JAYRIDE GROUP LIMITED — Interim / Quarterly Report 2021

Feb 23, 2021

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1H FY21 RESULTS AND APPENDIX 4D

Interim Financial Report for Half-Year ended 31 December 2020 Lodged with the ASX under Listing Rule 4.3A. Jayride Group Limited (ASX:JAY) ABN 49 155 285 528

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Jayride Group Limited Appendix 4D Half-year report

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1. Company details

Name of entity: Jayride Group Limited ABN: 49 155 285 528 Reporting period: For the half-year ended 31 December 2020 Previous period: For the half-year ended 31 December 2019

2. Results for announcement to the market

				$
Total revenue from ordinary activities (excluding COVID-19 government	down	81.17%	to	453,028
contributions)
Revenue from net commissions and fees booked	down	90.90%	to	215,154
Loss from ordinary activities after tax attributable to the owners of Jayride	down	47.78%	to	(2,148,195)
Group Limited
Loss for the half-year attributable to the owners of Jayride Group Limited	down	47.78%	to	(2,148,195)

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 $2,148,195 (31 December 2019: $4,113,488).

3. Net tangible assets

3. Net tangible assets
	31	Dec 2020	30 Jun 2020
		Cents	Cents
Net tangible assetsper ordinarysecurity		(0.63)	(1.38)

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 4D Half-year 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 were subject to a review by the auditors and the review report is attached as part of the Interim Report. The review report contains a paragraph emphasising a material uncertainty related to going concern.

11. Attachments

Details of attachments (if any):

The Interim Report of Jayride Group Limited for the half-year ended 31 December 2020 is attached.

12. Signed

Authorised by the Board of Directors.

Signed _________

Date: 24 February 2021

Rodney Bishop Managing Director Sydney

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Jayride Group Limited ABN 49 155 285 528

Interim Report - 31 December 2020

Jayride Group Limited
Contents
31 December 2020
Directors' report	2
Auditor's independence declaration	4
Statement of profit or loss and other comprehensive income	5
Statement of financial position	6
Statement of changes in equity	7
Statement of cash flows	8
Notes to the financial statements	9
Directors' declaration	19
Independent auditor's review report to the members of Jayride Group Limited	20

1

Jayride Group Limited Directors' report 31 December 2020

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The directors present their report, together with the financial statements, on the Company for the half-year ended 31 December 2020.

Directors

The following persons were directors of the Company during the whole of the financial half-year and up to the date of this report, unless otherwise stated:

Andrey Shirben - Chairman Rodney Bishop - Managing Director Samuel Saxton Yifat Shirben Rodney Cuthbert Andrew Coppin (resigned on 3 August 2020)

Principal activities

Jayride.com (ASX:JAY) is the world’s leading publicly listed airport transfers marketplace, where travellers compare and book rides around the world. With Jayride.com, travellers can compare and book with 3,700+ ride service companies, servicing 1,600+ airports in 110+ countries around the world, including the Americas, Europe, Middle East, Africa, Asia and the Pacific.

The Jayride.com platform aggregates ride service companies and distributes them to travellers at Jayride.com; and via travel brand partners including other technology platforms, travel agencies and wholesalers. These travel brands implement Jayride APIs to sell door–to–door ride services that build traveller confidence and defend their core travel business.

Jayride’s opportunity is to create the world’s first trusted global transport brand for travellers; a brand that travellers can trust and take with them as they travel around the world. Our purpose is “to let the traveller ride like a local”.

Jayride earns the majority of its revenue from passenger trips booked, where the Company acts as an agency for the traveller with the transport company and earns a commission on sale. Travellers visit Jayride.com or a Jayride travel brand partner to book passenger trips.

Jayride receives the Total Transaction Value ('TTV') for passenger trips and holds the funds on behalf of the traveller until after travel, at which point the Company remits payment of net fares to the transport company, retaining its commission. This commission, net of refunds, is the majority of the Company's revenue.

Founded in 2012, Jayride.com is headquartered in Sydney, Australia.

No significant changes have occurred in the nature of the Company's activity during the current financial half-year.

Dividends

There were no dividends paid, recommended or declared during the current or previous financial half-year.

Review of operations

The Company's revenue during the half-year was $848,528 (31 December 2019: $2,405,566), representing a decrease of 64.73% compared to the corresponding period.

The loss for the Company after providing for income tax amounted to $2,148,195 (31 December 2019: $4,113,488), representing a decrease of 47.78% compared to the corresponding period.

The performance was in line with the Company’s strategy to outlast the pandemic and prepare for the market recovery by prudently managing the resources and relationships whilst positioning for changes in traveller and partner behaviour and distressed competitor opportunities.

Significant changes in the state of affairs

The Company's trading in Q3 FY21 continued to be materially impacted by the COVID-19 pandemic in line with the Company's forecasts and market disclosures.

2

Jayride Group Limited Directors' report 31 December 2020

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The Company successfully raised $2,500,000 through share placements and a share purchase plan during the period by issuing 16,666,677 shares at 15 cents.

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 immediately after this directors' report.

This report is made in accordance with a resolution of directors, pursuant to section 306(3)(a) of the Corporations Act 2001.

On behalf of the directors

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_____ _______ Rodney Bishop Andrey Shirben Managing Director Chairman

24 February 2021 Sydney

3

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AUDITOR’S INDEPENDENCE DECLARATION

As lead auditor for the review of the financial report of Jayride Group Limited for the half year ended 31 December 2020, I declare that, to the best of my knowledge and belief, there have been no contraventions of:

• (i) the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

• (ii) any applicable code of professional conduct in relation to the review.

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RSM AUSTRALIA PARTNERS

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R J MORILLO MALDONADO

Partner

Dated: 24 February 2021 Melbourne, Victoria

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4

Jayride Group Limited

Statement of profit or loss and other comprehensive income For the half-year ended 31 December 2020

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Jayride Group Limited Statement of profit or loss and other comprehensive income For the half-year ended 31 December 2020
	Note	31 Dec 2020	31 Dec 2019
		$	$
Revenue
Net commission and fees booked	4	215,154	2,365,417
Interest revenue		340	149
Other income	5	633,034	40,000
Total revenue and income		848,528	2,405,566
Variable and support costs
Advertising and marketing costs		(41,914)	(1,096,638)
Variable operatingcosts		(135,102)	(1,017,868)
Total variable and support costs		(177,016)	(2,114,506)
Non-variable costs
Non-variable operating costs		(804,177)	(1,091,437)
Corporate costs		(327,506)	(372,255)
Growth costs	6	(392,255)	(961,879)
Share-based payments expense	17	(507,056)	(947,769)
Loss on disposal of plant and equipment		(118,313)	-
Depreciation and amortisation	7	(485,773)	(684,639)
Total non-variable costs		(2,635,080)	(4,057,979)
Non-operating costs
Currency movements		1,988	(55,009)
Finance costs	7	(186,615)	(291,560)
Total non-operatingcosts		(184,627)	(346,569)
Loss before income tax expense		(2,148,195)	(4,113,488)
Income tax expense		-	-
Loss after income tax expense for the half-year attributable to the owners of
Jayride Group Limited		(2,148,195)	(4,113,488)
Other comprehensive income for the half-year,net of tax		-	-
Total comprehensive loss for the half-year attributable to the owners of Jayride
Group Limited		(2,148,195)	(4,113,488)
		Cents	Cents
Basic loss per share	8	(1.96)	(4.81)
Diluted loss per share	8	(1.96)	(4.81)

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

5

Jayride Group Limited Statement of financial position As at 31 December 2020

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Jayride Group Limited Statement of financial position As at 31 December 2020
	Note	31 Dec 2020	30 Jun 2020
		$	$
Assets
Current assets
Cash and cash equivalents		2,264,882	963,459
Trade and other receivables	9	287,557	742,102
COVID-19 government contribution receivable		66,000	82,000
Goods and services tax receivable		20,011	25,894
Research and development incentive receivable		-	619,153
Prepayments		56,967	68,623
Total current assets		2,695,417	2,501,231
Non-current assets
Deposits		8,800	-
Plant and equipment	10	44,085	175,014
Right-of-use assets	11	-	229,888
Capitalised technologycosts	12	2,451,145	2,343,841
Total non-current assets		2,504,030	2,748,743
Total assets		5,199,447	5,249,974
Liabilities
Current liabilities
Trade and other payables		1,400,522	1,641,132
Contract liabilities		20,761	19,333
Borrowings		2,807	115,959
Lease liabilities		-	338,216
Employee benefits		136,797	156,289
Provisions		-	98,776
Future transportpayments		114,685	188,033
Total current liabilities		1,675,572	2,557,738
Non-current liabilities
Borrowings		1,816,947	1,744,651
Employee benefits		26,306	21,649
Total non-current liabilities		1,843,253	1,766,300
Total liabilities		3,518,825	4,324,038
Net assets		1,680,622	925,936
Equity
Issued capital	13	27,055,597	24,316,515
Reserves adjustment related to exercise of share options		254,636	-
Reserves	14	3,359,476	3,450,313
Accumulated losses		(28,989,087)	(26,840,892)
Total equity		1,680,622	925,936

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

6

Jayride Group Limited Statement of changes in equity For the half-year ended 31 December 2020

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Jayride Group Limited Statement of changes in equity For the half-year ended 31 December 2020
	Issued		Accumulated
	capital	Reserves	losses	Total equity
	$	$	$	$
Balance at 1 July 2019	18,360,858	3,146,680	(19,752,097)	1,755,441
Loss after income tax expense for the half-year	-	-	(4,113,488)	(4,113,488)
Other comprehensive income for the half-year,net of tax	-	-	-	-
Total comprehensive loss for the half-year	-	-	(4,113,488)	(4,113,488)
Transactions with owners in their capacity as owners:
Contributions of equity, net of transaction costs	4,764,672	-	-	4,764,672
Share-based payments (shares)	518,461	225,544	-	744,005
Share-based payments (options)	-	203,764	-	203,764
Exercise of options	30,000	-	-	30,000
Transfer on issue of shares to employees	250,060	(250,060)	-	-
Balance at 31 December 2019	23,924,051	3,325,928	(23,865,585)	3,384,394
	Issued		Accumulated
	capital	Reserves	losses	Total equity
	$	$	$	$
Balance at 1 July 2020	24,316,515	3,450,313	(26,840,892)	925,936
Loss after income tax expense for the half-year	-	-	(2,148,195)	(2,148,195)
Other comprehensive income for the half-year,net of tax	-	-	-	-
Total comprehensive loss for the half-year	-	-	(2,148,195)	(2,148,195)
Transactions with owners in their capacity as owners:
Contributions of equity, net of transaction costs (note 13)	2,355,397	-	-	2,355,397
Limited recourse loan repayment (note 13)	40,428	-	-	40,428
Share-based payments (shares) (note 17)	343,257	(34,367)	-	308,890
Share-based payments (options) (note 17)	-	198,166	-	198,166
Transfer in relation to exercise of share options	-	(254,636)	254,636	-
Balance at 31 December 2020	27,055,597	3,359,476	(28,734,451)	1,680,622

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

7

Jayride Group Limited Statement of cash flows For the half-year ended 31 December 2020

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Jayride Group Limited Statement of cash flows For the half-year ended 31 December 2020
	31 Dec 2020	31 Dec 2019
	$	$
Cash flows from operating activities
Net receipts from bookings (inclusive of GST)	211,331	2,085,953
Payments to suppliers and employees (inclusive of GST)	(1,470,989)	(3,745,228)
Grants funding for operating activities	168,846	509,975
COVID-19 government contributions	411,140	-
Interest received	340	21
Interest and other finance costs paid	(112,430)	(185,156)
Other	1,969	-
Net cash used in operatingactivities	(789,793)	(1,334,435)
Cash flows from investing activities
Payments for plant and equipment	-	(2,454)
Payments for intangibles	(533,618)	(582,127)
Grants funding for investing activities	550,667	489,024
Proceeds from disposal ofproperty, plant and equipment	807	-
Net cash from/(used in)investingactivities	17,856	(95,557)
Cash flows from financing activities
Proceeds from issue of shares	2,500,000	4,762,858
Proceeds from repayment of limited recourse loan	40,428	-
Share issue transaction costs	(134,701)	(238,185)
Proceeds from borrowings	-	295,893
Repayment of borrowings	(113,152)	-
Repayment of lease liabilities	(215,317)	(209,687)
Net cash from financingactivities	2,077,258	4,610,879
Net increase in cash and cash equivalents	1,305,321	3,180,887
Cash and cash equivalents at the beginning of the financial half-year	963,459	1,433,354
Effects of exchange rate changes on cash and cash equivalents	(3,898)	(40,793)
Cash and cash equivalents at the end of the financial half-year	2,264,882	4,573,448

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

8

Jayride Group Limited Notes to the financial statements 31 December 2020

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Note 1. General information

The financial statements cover Jayride Group Limited as an individual entity. The financial statements are presented in Australian dollars, which is Jayride Group Limited's functional and presentation currency.

Jayride Group Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business is:

Suite 1 Level 11 55 Clarence Street Sydney NSW 2000

A description of the nature of the Company's operations and its principal activities are included in the directors' report, which is not part of the financial statements.

The financial statements were authorised for issue, in accordance with a resolution of directors, on 24 February 2021.

Note 2. Significant accounting policies

These general purpose financial statements for the interim half-year reporting period ended 31 December 2020 have been prepared in accordance with Australian Accounting Standard AASB 134 'Interim Financial Reporting' and the Corporations Act 2001, as appropriate for for-profit oriented entities. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 'Interim Financial Reporting'.

These general purpose financial statements do not include all the notes of the type normally included in annual financial statements. Accordingly, these financial statements are to be read in conjunction with the annual report for the year ended 30 June 2020 and any public announcements made by the company during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

The principal accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, except for the policies stated below.

New or amended Accounting Standards and Interpretations adopted

The Company 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 adoption of these new or amended standards and interpretations did not have any significant impact on the financial performance or position of the Company.

Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

Going concern

The financial statements have been prepared on the going concern basis, which contemplates continuity of normal business activities and the realisation of assets and discharge of liabilities in the normal course of business.

As disclosed in the financial statements, the Company incurred a loss amounting to $2,148,195 had net cash outflows from operating activities of $789,793 for the half-year ended 31 December 2020.

The business and industry continues to be materially impacted by the COVID-19 pandemic. At the date of this report, the Company’s operations continue to be well under historical pre-COVID-19 levels. In light of the uncertainty over the spread of the virus, outlook on a vaccine, adoption of preventative measures, the global travel environment and governmental response, the Company is operating on the assumption that its business will increase gradually during the next 12 months and it will approach pre-COVID-19 levels during FY22.

These factors indicate a material uncertainty which may cast significant doubt as to whether the Company will continue as a going concern and therefore whether it will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report.

9

Jayride Group Limited Notes to the financial statements 31 December 2020

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Note 2. Significant accounting policies (continued)

The Directors believe that there are reasonable grounds to believe that the Company will be able to continue as a going concern, after consideration of the following factors:

• The Company continues to monitor its cash flows having implemented a cost optimisation plan in March 2020 that delivered material improvements to operational cash flow compared to the previous period. The plan included significant reductions to employee and office lease costs as well as various general and administrative expenses;

• Management has identified operating expenditures supporting its market capture objectives where further cost optimisations can be achieved if the COVID-19 pandemic continues to impact the travel market beyond expectations; and

• The Company has demonstrated the ability to raise capital if required pursuant to ASX listing rule 7.1 and 7.1A.

Accordingly, the Directors believe that the Company will be able to continue as a going concern and that it is appropriate to adopt the going concern basis in the preparation of the financial report.

The financial report does not include any adjustments relating to the amounts or classification of recorded assets or liabilities that might be necessary if the company does not continue as a going concern.

Note 3. Operating segments

Identification of reportable operating segments

The Company's operating segments are 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 Directors are of the opinion that there is one reportable segment in the Company as the CODM reviews results, assesses performance and allocates resources at a Company level.

As the information reported to the CODM is the results of the Company as a whole, the segment results represent those disclosed in these financial statements and are not duplicated here.

Major customers

During the half-year ended 31 December 2020 approximately 68.50% (31 December 2019: 10.78%) of the Company's external revenue was derived from sales to major customers.

Geographical information

Geographical information
				Geographical		non-current
	Sales to external customers				assets
	31	Dec 2020	31 Dec 2019	31 Dec	2020	30 Jun 2020
		$	$	$		$
Oceania		35,177	657,746	2,504,030		2,748,743
Europe		57,681	363,446		-	-
North America		115,672	1,102,036		-	-
South America		-	16,354		-	-
Asia		4,165	213,799		-	-
Africa		2,459	12,036		-	-
		215,154	2,365,417	2,504,030		2,748,743

The geographical information for the half-year ended 31 December 2019 has been restated to align with the presentation for the half-year ended 31 December 2020.

10

Jayride Group Limited Notes to the financial statements 31 December 2020

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Note 4. Net commission and fees booked

Note 4. Net commission and fees booked
	31 Dec 2020	31 Dec 2019
	$	$
Revenue from contracts with customers
Net commission and fees booked	215,154	2,365,417

Disaggregation of revenue

For disaggregation of revenue from contracts with customers, refer to note 3.

Timing of revenue recognition

Revenue from contracts with customers is recognised at a point in time.

Note 5. Other income

Note 5. Other income
	31 Dec 2020	31 Dec	2019
	$	$
Government contributions (Research and development tax incentive and Export Market
Development Grant)	100,000	40,000
COVID-19 government contributions*	395,500		-
Gain on derecognition of right-of-use assets (note 11)	44,328		-
Proceeds from insurance settlement	93,206		-
	633,034	40,000

• During the COVID-19 pandemic, the Company has received $370,500 from JobKeeper support payments from the Australian Government which are passed on to eligible employees. These have been recognised as government grants in the financial statements and recorded as other income over the periods in which the related employee benefits are recognised as an expense. The Company is eligible for JobKeeper support from the government on the condition that employee benefits continue to be paid. In addition the Company received cash flow boost support payments of $25,000 from the Australian Government.

Note 6. Growth costs

Note 6. Growth costs
	31 Dec 2020	31 Dec 2019
	$	$
Engineering costs not capitalised (a)	30,717	81,047
Employee and contractor costs	360,270	847,766
Othergrowth costs	1,268	33,066
	392,255	961,879

(a) Engineering costs not capitalised

	31 Dec 2020	31 Dec 2019
	$	$
Total technology costs	564,335	663,174
Less: capitalised technologycosts	(533,618)	(582,127)
Engineeringcosts not capitalised	30,717	81,047

11

Jayride Group Limited Notes to the financial statements 31 December 2020

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Note 7. Expenses

Note 7. Expenses
	31 Dec 2020	31 Dec 2019
	$	$
Loss before income tax includes the following specific expenses:
Depreciation
Fixtures and fittings	1,538	9,668
Office buildings right-of-use assets	47,650	285,900
Computer equipment	10,247	11,144
Office equipment	24	229
Total depreciation	59,459	306,941
Amortisation
Capitalised technologycosts	426,314	377,698
Total depreciation and amortisation	485,773	684,639
Finance costs
Interest and finance charges paid/payable on borrowings	184,725	271,576
Interest and finance charges paid/payable on lease liabilities	1,646	18,556
Unwindingof the discount onprovisions	244	1,428
Finance costs expensed	186,615	291,560
Superannuation expense
Defined contribution superannuation expense	86,279	157,775
Note 8. Loss per share
	31 Dec 2020	31 Dec 2019
	$	$
Loss after income tax attributable to the owners of Jayride GroupLimited	(2,148,195)	(4,113,488)
	Number	Number
Weighted average number of ordinaryshares used in calculatingbasic lossper share	109,625,988	85,551,600
Weighted average number of ordinaryshares used in calculatingdiluted lossper share	109,625,988	85,551,600
	Cents	Cents
Basic loss per share	(1.96)	(4.81)
Diluted loss per share	(1.96)	(4.81)

Note 8. Loss per share

12,977,128 (31 December 2019: 18,475,203) options, 4,850,000 (31 December 2019: 3,650,000) performance options, 3,616,637 (31 December 2019: 3,616,637) warrants and 768,875 (31 December 2019: 558,759) shares held in Employees' Trust have been excluded from the above calculation as their inclusion would be anti-dilutive.

12

Jayride Group Limited Notes to the financial statements 31 December 2020

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Note 9. Trade and other receivables

Note 9. Trade and other receivables
	31 Dec 2020	30 Jun 2020
	$	$
Current assets
Trade receivables	645,921	774,591
Less: Allowance for expected credit losses	(360,039)	(32,489)
	285,882	742,102
Other receivables	1,675	-
	287,557	742,102

Allowance for expected credit losses

The Company has recognised a loss of $nil in profit or loss in respect of the expected credit losses for the half-year ended 31 December 2020 (30 June 2020: $49,484). The Company received $93,206 proceeds from insurance settlement on aged receivables that has been fully provisioned but not yet written-off in trade receivables with recovery discussions on-going.

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

					Allowance for expected	Allowance for expected	Allowance for expected
	Expected credit loss rate		Carrying	amount		credit losses
	31 Dec 2020	30 Jun 2020	31 Dec 2020	30 Jun 2020	31 Dec	2020	30 Jun 2020
	%	%	$	$	$		$
Yet to be billed	-	-	122,350	201,976		-	-
Current	4.366%	1.000%	42,170	8,209		1,841	82
Less than 3 months overdue	14.873%	5.819%	19,862	191,990		2,954	11,172
3 to 6 months overdue	31.851%	5.250%	1,664	294,270		530	15,449
Over 6 months overdue	77.133%	7.404%	459,875	78,146	354,714		5,786
			645,921	774,591	360,039		32,489

The Company has increased its monitoring of debt recovery as there is an increased probability of customers delaying payment or being unable to pay due to COVID-19 pandemic.

Note 10. Plant and equipment

Note 10. Plant and equipment
	31 Dec 2020	30 Jun 2020
	$	$
Non-current assets
Fixtures and fittings - at cost	3,648	173,161
Less: Accumulated depreciation	(2,812)	(52,666)
	836	120,495
Computer equipment - at cost	164,801	166,755
Less: Accumulated depreciation	(121,552)	(112,966)
	43,249	53,789
Office equipment - at cost	1,101	3,896
Less: Accumulated depreciation	(1,101)	(3,166)
	-	730
	44,085	175,014

13

Jayride Group Limited Notes to the financial statements 31 December 2020

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Note 10. Plant and equipment (continued)

Reconciliations

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

	Fixtures and	Computer	Office
	fittings	equipment	equipment	Total
	$	$	$	$
Balance at 1 July 2020	120,495	53,789	730	175,014
Disposals	(118,121)	(293)	(706)	(119,120)
Depreciation expense	(1,538)	(10,247)	(24)	(11,809)
Balance at 31 December 2020	836	43,249	-	44,085

Note 11. Right-of-use assets

The Company leased office space under an agreement that was surrendered on 31 July 2020. The Company recognised a gain on derecognition of the right-of-use of $44,328 (refer to note 5). No additions to the right-of-use assets were made during the half-year.

Note 12. Capitalised technology costs

Note 12. Capitalised technology costs
	31 Dec 2020	30 Jun 2020
	$	$
Non-current assets
Capitalised technology costs	4,752,287	4,218,669
Less: Accumulated amortisation	(2,301,142)	(1,874,828)
	2,451,145	2,343,841

Reconciliations

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

	Capitalised
	technology
	costs
	$
Balance at 1 July 2020	2,343,841
Additions	533,618
Amortisation expense	(426,314)
Balance at 31 December 2020	2,451,145

Impairment testing

In accordance with Australian Accounting Standards, an impairment test was performed of the capitalised technology costs during the period. This test consisted of determining the asset’s recoverable amount using a value-in-use calculation comprising a discounted cash flow model ('DCF') based on a five-year forecast. The results of this test showed that the recoverable amount of capitalised technology costs exceeded carrying value of the asset.

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Jayride Group Limited Notes to the financial statements 31 December 2020

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Note 12. Capitalised technology costs (continued)

Key assumptions are those to which the recoverable amount of an asset or cash-generating unit is most sensitive. The following key assumptions were used in the DCF model.

	31 December
	2020
Key assumption	%
Compounded annual growth rate	68.28%
Gross profit margin (after deducting variable and support costs)	40.00%
Cumulative return on sales	2.92%
Weighted average cost of capital ('WACC')	22.59%

Sensitivity testing reveals impairment of the capitalised technology costs would have occurred if either:

• the expected annual growth rate over the period was less than 64.39%;

• the gross profit margin (after variable and supports costs) for the period was less than 36.33%;

• the cumulative return on sales was less than 1.67%; or

• the WACC was greater than 24.80%.

Management believes the compounded annual growth rate adopted is reasonable given the base position that growth is measured against, the size of the market, the structural shift to online booking, expected changes to the competitive landscape and the uncertainty caused by COVID-19. The value-in-use calculation includes negative growth in year 1, followed by a market recovery of approximately 85.00% of the pre-COVID 19 levels in year 2 and then exceeding historical growth rates after that point.

Management believes the gross profit margin (after deducting variable and support costs) adopted is reasonable because the required % performance for variable and support costs is already being achieved on a normalised revenue basis (reverse current refunded bookings rate and apply historical refunded bookings rate).

Management believes the cumulative return on sales adopted is reasonable having regard to the modelling of forecast revenue and the length of time required to improve operational efficiencies. Cumulative return on sales excludes share based payments, depreciation and amortisation, financing costs and currency movements.

Management believes the WACC adopted is a reasonable reflection of the Company's current and forecast WACC, the time value of money, risk-free interest rates and the volatility of the share price relative to market movements.

Note 13. Issued capital

Note 13. Issued capital
	31 Dec 2020	30 Jun 2020	31 Dec	2020	30 Jun	2020
	Shares	Shares	$		$
Ordinary shares - fully paid	121,983,449	102,887,024	27,055,597		24,316,515
Ordinary shares - held in Employees' Trust	768,875	2,355,803		-		-
Ordinary shares - held in Employees' Trust (allocated not
converted)	-	(140,563)		-		-
	122,752,324	105,102,264	27,055,597		24,316,515

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Jayride Group Limited Notes to the financial statements 31 December 2020

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Note 13. Issued capital (continued)

Movements in ordinary share capital

Movements in ordinary share capital
Details	Date	Shares	Issue price	$
Balance	1 July 2020	102,887,024		24,316,515
Issue of shares to employees under Employee Share
Scheme ('ESS')	15 July 2020	60,720	$0.1481	8,994
Issue of shares to employees under ESS	20 July 2020	107,258	$0.1414	15,165
Issue of shares to employees under ESS	16 August 2020	724,405	$0.1315	95,281
Issue of shares	21 October 2020	10,000,000	$0.1500	1,500,000
Issue of shares	24 November 2020	4,006,667	$0.1500	601,000
Issue of shares	27 November 2020	2,660,010	$0.1500	399,000
Issue of shares to employees under ESS	15 December 2020	553,982	$0.1200	66,478
Limited recourse loan repayment - exercisable pre-
IPO options	21 December 2020	-		40,428
Issue of shares to directors under ESS (accrued)	31 December 2020	983,383 -	$0.1600	157,339
Share issue costs		-		(144,603)
Balance	31 December 2020	121,983,449		27,055,597

Movements in shares held in Employees Trust

Details	Date	Shares	Issue price	$
Balance	1 July 2020	2,215,240
Issue of shares to employees	15 July 2020	(60,720)	$0.1481	8,994
Issue of shares to employees	20 July 2020	(107,258)	$0.1414	15,165
Issue of shares to employees	16 August 2020	(724,405)	$0.1315	95,281
Issue of shares to employees	15 December 2020	(553,982)	$0.1200	66,478
Balance	31 December 2020	768,875

Ordinary shares

Ordinary shares entitle the holder to participate in any dividends declared and any proceeds attributable to shareholders should the Company be wound up, in proportions that consider both the number of shares held and the extent to which those shares are paid up. 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.

Ordinary shares held in Employees' Trust

During the year 2019, the Jayride Employee Share Trust ('Trust') was established to streamline share-based compensation for employees. Fully paid ordinary shares in the Company were issued to Royal Exchange Nominees Pty Ltd, as trustee of the Trust. The Trust issues shares to employees as part of their remuneration package. The Trust controls the shares set aside for future share-based remuneration.

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Jayride Group Limited Notes to the financial statements 31 December 2020

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Note 14. Reserves

			31 Dec 2020	30 Jun 2020
			$	$
Share-basedpayments reserve			3,359,476	3,450,313
Movements in share-based payments reserve
		Share-based
		payments
	Equity	Options	Warrants	Total
	$	$	$
Balance at 1 July 2020	166,161	2,917,066	367,086	3,450,313
Share-based payments (shares)	(34,367)	-	-	(34,367)
Share-based payments (options)	-	198,166	-	198,166
Transfer in relation to exercise of share options	-	(254,636)	-	(254,636)
Balance as at 31 December 2020	131,794	2,860,596	367,086	3,359,476

Note 15. Dividends

There were no dividends paid, recommended or declared during the current or previous financial half-year.

Note 16. Contingent liabilities

The Company has given bank guarantees as at 31 December 2020 of $nil (30 June 2020: $323,890) to various landlords.

Note 17. Share-based payments

Employee Share Scheme ('ESS')

In 2017, the Company established an ESS that incentivises employees to become shareholders of the Company.

The Company issued shares to key employees as part of their base package as well as on a performance basis for achieving net revenue, profitability, or cash milestones in the financial half-year ended 31 December 2020. The shares issued were as follows:

		Base package	Performance	Total
		Number of	Number of	Number of
Actual issue date	Issue price	shares issued	shares issued	shares issued
15/07/2020	$0.1481	60,720	-	60,720
20/07/2020	$0.1414	-	107,258	107,258
16/08/2020	$0.1315	63,540	660,865	724,405
15/12/2020	$0.1200	158,299	395,683	553,982
31/12/2020	$0.1600	983,383	-	983,383
Reversal of prior year accruals	$0.1511	(882,598)	(217,212)	(1,099,810)
Accrued	$0.1549	337,260	513,602	850,862
		720,604	1,460,196	2,180,800

Options

The terms and conditions of options granted during the half-year ended 31 December 2020 are as follows:

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Jayride Group Limited Notes to the financial statements 31 December 2020

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Note 17. Share-based payments (continued)

			Exercise
Grant date	Type and vesting condition	Expiry date	price	Number
01/07/2020	Class C Employee Options	30/06/2025	$0.30	2,723,132
	3/48 vested 21/10/2020 and 45/48 of the total options issued
	will vest at rate of 1/48 every month until 30/06/2024.
01/07/2020	Class D Employee Options	30/06/2025	$0.30	2,430,649
	3/48 vested immediately on 21/10/2020 and 45/48 of the total
	options will vest at rate of 1/48 every month until 30/06/2024.
Performance options
The terms and conditions of performance options granted during the half-year		ended 31 December 2020 are as follows:
Grant date	Type and vesting condition	Expiry date	Exercise price Number
21/10/2020	Class I Director Performance Options	30/06/2024	$0.30	1,200,000
	1/12 of the total options will vest every 3 months until
	20/10/2023.

Performance options

The terms and conditions of performance options granted during the half-year ended 31 December 2020 are as follows:

The options and performance options granted during the half-year ended 31 December 2020 were valued using the binomial valuation model. Inputs used to determine the fair value at the grant date are as follows:

			Share price				Risk-free
			at grant	Exercise	Expected	Dividend	interest	Fair value at
Type	Grant date	Expiry date	date	price	volatility	yield	rate	grant date
Class C & D	01/07/2020	30/06/2025	$0.1450	$0.30	85.00%	-	0.87%	0.0649
Class I	21/10/2020	30/06/2024	$0.1600	$0.30	85.00%	-	0.13%	0.0644

Warrants

The Company did not issue any warrants during the half-year ended 31 December 2020.

Share-based payment expense recognised

Share-based payment expense recognised
	31	Dec 2020	31 Dec 2019
		$	$
Shares		308,890	744,005
Options andperformance options		198,166	203,764
		507,056	947,769

Note 18. Events after the reporting period

COVID-19

The Company continues to be impacted by the COVID-19 pandemic. Due to rapidly changing global circumstances relating to the COVID-19 pandemic, including quarantines, travel restrictions and economic stimuluses, it is not practicable to estimate the potential impact after the reporting date.

Changes to key management personnel

On 15 January 2021, the Company announced that Mr Andrey Shirben, Chair of the Company, had flagged his intention to resign from the Board on 31 March 2021 to pursue other interests. The Company has begun a search to appoint a new independent non-executive Chair.

No other matter or circumstance has arisen since 31 December 2020 that has significantly affected, or may significantly affect the Company's operations, the results of those operations, or the Company's state of affairs in future financial years.

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Jayride Group Limited Directors' declaration 31 December 2020

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In the directors' opinion:

• the attached financial statements and notes comply with the Corporations Act 2001, Australian Accounting Standard AASB 134 'Interim Financial Reporting', the Corporations Regulations 2001 and other mandatory professional reporting requirements;

• the attached financial statements and notes give a true and fair view of the Company's financial position as at 31 December 2020 and of its performance for the financial half-year ended on that date; and

• there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of directors made pursuant to section 303(5)(a) of the Corporations Act 2001.

On behalf of the directors

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_____ _______ Rodney Bishop Andrey Shirben Managing Director Chairman 24 February 2021 Sydney

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INDEPENDENT AUDITOR’S REVIEW REPORT

TO THE MEMBERS OF JAYRIDE GROUP LIMITED

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of Jayride Group Limited (“the Company”) which comprises the statement of financial position as at 31 December 2020, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration.

Directors’ Responsibility for the Half-Year Financial Report

The directors of the Company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the Company’s financial position as at 31 December 2020 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . As the auditor of Jayride Group Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

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Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 . We confirm that the independence declaration required by the Corporations act 2001 , which has been given to the directors of Jayride Group Limited, would be in the same terms if given to the directors as at the time of this auditor’s review report.

Material Uncertainty Related to Going Concern

We draw attention to Note 1 in the financial report, which indicates that the Company incurred a net loss of $2,148,195 and negative operating cash outflows of $789,793 during the half year ended 31 December 2020. As stated in Note 1, these events, along with other matters as set forth in Note 1, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our conclusion is not modified in respect of this matter.

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Jayride Group Limited is not in accordance with the Corporations Act 2001 including:

• (a) giving a true and fair view of the Company’s financial position as at 31 December 2020 and of its performance for the half-year ended on that date; and

• (b) complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001.

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RSM AUSTRALIA PARTNERS

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R J MORILLO MALDONADO

Partner

Dated: 24 February 2021 Melbourne, Victoria

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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