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SQID Technologies Limited — Management Reports 2025
Nov 7, 2025
47843_rns_2025-11-07_bbf9423c-0ed1-4a6b-955f-f397503943e3.pdf
Management Reports
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1
SQID TECHNOLOGIES LIMITED
Management Discussion and Analysis
For the three months ended 30 September 2025
DISCLAIMER FOR FORWARD-LOOKING INFORMATION
Certain statements in this Management Discussion and Analysis are forward-looking statements or information (collectively “forward-looking statements”). The Company is providing cautionary statements identifying important factors that could cause the Company’s actual results to differ materially from those projected in these forward-looking statements. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as “may”, “anticipates”, “is expected to”, “estimates”, “intends”, “plans”, “projection”, “could”, “vision”, “objective”, “goals” and “outlook”) are not historical facts and may be forward-looking and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. In making these forward-looking statements, the Company has assumed that the current market will continue and grow and that the risks listed below will not adversely impact the Company. These forward-looking statements include, among other things, statements relating to the ability of the Company to generate revenue; use of funds; intentions to further develop, market and promote its operations by expansion of its merchant base and industries served in Australia; strategy for customer retention, growth, service development, market position and financial results; the success of marketing and sales efforts of the Company; the Company’s efforts to continuously update its software to meet business requirements; future sales plans and strategies; the economy and other future conditions; the timeline to further develop and market future enhancements; unanticipated cash needs and the possible need for additional financing and the adoption of governance policies, committees and practices.
By their nature, forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, which contribute to the possibility that the predicted outcomes may not occur or may be delayed. The risks, uncertainties and other factors, many of which are beyond our control, that could influence actual results include, but are not limited to: a downturn in general economic conditions; the ability of the Company to continue to generate revenue adequate to fund its business plans and operations; the ability of the Company to expand its operations in Australia; competitive conditions in the industry which could prevent the Company from continuing to be profitable; competition from other payment process providers who are well established with the financial capacity to overwhelm the ability of the Company to operate in Australia, security risks; increasing costs of being a publicly traded company, the possibility that our services may become further regulated; the effectiveness and efficiency of advertising and promotional expenditures to generate market interest in the Company’s products and services; the inability to list on a public market; volatility of the Company’s share price following listing; liquidity and the inability to secure additional financing; the Company’s intention not to pay dividends in the near future; claims, lawsuits and other legal proceedings and challenges; conflict of interest with directors and management and other factors beyond the Company’s control.
These forward-looking statements reflect management’s current views and are based on certain assumptions and speak only as of the date of this report, and, except as required by applicable law, the Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for management to predict all such factors and to assess in advance the impact of each such factor on the Company’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement. See “Risk Factors and Uncertainties”.
2
SQID TECHNOLOGIES LIMITED
Management Discussion and Analysis
For the three months ended 30 September 2025
1.1 – Date and Basis of Discussion & Analysis
This management discussion and analysis (“MD&A”) is dated 7 November 2025 and should be read in conjunction with the audited financial statements of SQID Technologies Limited for the fiscal twelve months ended 31 December 2024 (“the Financial Statements”). The Financial Statements are prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”). Unless expressly stated otherwise, all financial information is presented in Australian dollars.
1.2 – Overall Performance
Nature of Business
The continuing activities of the Company include:
- the provision of merchant services and transaction processing solutions to business merchants and ecommerce customers across both Business to Business (B2B) and Business to Consumer (B2C) segments through its leading partner platform; and
- management of investments held.
There were no significant changes to the nature of business during the reporting period.
1.3 – Selected Annual Information – not applicable
1.4 – Results of Operations for the third quarter and ytd
Continuing operations compared to the previous corresponding period being September 2024 (pcp)
Third quarter
Revenue from continuing operations was $46,908 (pcp: $49,498).
The profit from continuing operations was $1,908 (pcp: $7,009 loss).
Year to date
The net loss for the year to date was $12,287 (2024: $28,791) comprising a loss from continuing operations of $12,287 (2024: $28,791).
The loss from continuing operations includes:
- Revenue from contracts with customers $140,063 (2024: $146,788), and
- Total expenses $152,352 (2024: $175,582).
Lower reported revenue is attributed to on-going cost of living pressures affecting consumer discretionary spending levels.
As at 30 September 2025, the Company's cash and cash equivalents balance was $10,433 (31 December 2024: $33,394). The lower cash balance is largely attributed to the operating loss and cash applied to reducing trade and other payable balances.
SQID TECHNOLOGIES LIMITED
Management Discussion and Analysis
For the three months ended 30 September 2025
1.5 – Summary of Quarterly Results
| Consolidated Balance Sheet : | 30 Sep 25 | 30 Jun 25 | 31 Mar 25 | 31 Dec 24 | 30 Sep 24 | 30 Jun 24 |
|---|---|---|---|---|---|---|
| Assets | ||||||
| Current Assets | ||||||
| Bank | 10,433 | 19,651 | 23,637 | 33,394 | 6,640 | 19,155 |
| Accounts Receivable | 16,857 | 15,447 | 17,205 | 16,064 | 17,166 | 17,053 |
| Inventories | - | - | - | - | - | - |
| Other Current Assets | 1,108 | 1,108 | 1,108 | 1,108 | ||
| Assets held for sale | - | - | - | - | - | - |
| Total Current Assets | 28,398 | 36,206 | 41,950 | 50,566 | 23,806 | 36,208 |
| Non-Current Assets | ||||||
| Fixed Assets | - | - | - | - | - | - |
| Investments accounted for using the | - | - | - | - | - | - |
| Intangible Assets | - | - | - | - | - | - |
| Security Bonds | - | - | - | - | - | - |
| Other Financial Assets | 25,191 | 25,191 | 25,191 | 25,191 | 75,568 | 75,568 |
| Deferred Tax Asset | - | - | - | - | - | - |
| Total Non-Current Assets | 25,191 | 25,191 | 25,191 | 25,191 | 75,568 | 75,568 |
| Total Assets | 53,589 | 61,397 | 67,141 | 75,757 | 99,374 | 111,776 |
| Liabilities | ||||||
| Current Liabilities | ||||||
| Accounts Payable | 24,823 | 34,539 | 34,533 | 34,704 | 28,067 | 33,460 |
| Contract liabilities | - | - | - | - | - | - |
| Merchant liabilities | - | - | - | - | - | - |
| Employee provisions | - | - | - | - | - | - |
| Assets held for sale - liabilities | - | - | - | - | - | - |
| Total Current Liabilities | 24,823 | 34,539 | 34,533 | 34,704 | 28,067 | 33,460 |
| Non-Current Liabilities | ||||||
| Employee provisions | - | - | - | - | - | - |
| Total Non-Current Liabilities | - | - | - | - | - | - |
| Total Liabilities | 24,823 | 34,539 | 34,533 | 34,704 | 28,067 | 33,460 |
| Net Assets | 28,766 | 26,858 | 32,608 | 41,053 | 71,307 | 78,316 |
| Equity | ||||||
| Share Capital | 8,824,267 | 8,824,267 | 8,824,267 | 8,824,267 | 8,824,267 | 8,824,267 |
| Reserves | - | - | - | - | - | - |
| Retained Earnings | (8,795,501) | (8,797,409) | (8,791,659) | (8,783,214) | (8,752,960) | (8,745,951) |
| Non controlling interests | - | - | - | - | - | - |
| Total Equity | 28,766 | 26,858 | 32,608 | 41,053 | 71,307 | 78,316 |
SQID TECHNOLOGIES LIMITED
Management Discussion and Analysis
For the three months ended 30 September 2025
1.5 – Summary of Quarterly Results (continued)
| Profit & Loss Quarters ended Revenue | 30 Sep 25 | 30 Jun 25 | 31 Mar 25 | 31 Dec 24 | 30 Sep 24 | 30 Jun 24 |
|---|---|---|---|---|---|---|
| Revenue from contracts with customers | 46,908 | 48,825 | 44,330 | 49,725 | 49,498 | 48,381 |
| 46,908 | 48,825 | 44,330 | 49,725 | 49,498 | 48,381 | |
| Direct Costs | - | - | - | - | - | - |
| Gross Profit | 46,908 | 48,825 | 44,330 | 49,725 | 49,498 | 48,381 |
| 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | |
| Interest Income | 1 | - | 1 | - | 1 | 1 |
| Government assistance (line R&D) | - | - | - | - | - | - |
| Share of profits of associates accou | - | - | - | - | - | - |
| Other income | - | - | - | - | - | - |
| Fair value gains /losses | - | - | - | (50,377) | - | - |
| Impairment losses | - | - | - | - | - | - |
| Expenses | ||||||
| Employee Benefits | - | - | - | - | - | - |
| Depreciation & Amortisation | - | - | - | - | - | - |
| Consultancy Fees | 30,170 | 27,420 | 30,170 | 28,420 | 31,795 | 36,545 |
| Director Fees | 4,500 | 4,500 | 4,500 | 4,500 | 5,000 | 6,000 |
| Professional Fees | 3,750 | 7,500 | 7,500 | 2,500 | 11,250 | 117 |
| Listing Expenses | 5,107 | 11,137 | 4,255 | 4,090 | 4,681 | 8,023 |
| IT & Hosting Costs | - | - | - | - | - | - |
| Other Expenses | 1,474 | 4,018 | 6,351 | 1,555 | 3,782 | 1,976 |
| Finance costs | - | - | - | - | - | - |
| Total Expenses | 45,001 | 54,575 | 52,776 | 41,065 | 56,508 | 52,661 |
| Profit / (loss) before Tax Income Tax | 1,908 | (5,750) | (8,445) | (41,717) | (7,009) | (4,279) |
| Profit / (loss) after Tax | 1,908 | (5,750) | (8,445) | (41,717) | (7,009) | (4,279) |
| Discontinued operations | - | - | (11,463) | 11,463 | - | - |
| Non-controlling interests | - | - | - | - | - | - |
| Loss for SQID owners | 1,908 | (5,750) | (19,908) | (30,254) | (7,009) | (4,279) |
| Basic & Diluted Earnings per Share | 0.01 | (0.01) | (0.01) | (0.01) | (0.01) | (0.01) |
1.6 – Liquidity and Capital Resources
For the period ended 30 September 2025, the Company recorded revenue from contracts with customers of $140,063 (2024: $146,788), incurred a net loss of $12,287 (2024: $28,791) and had operating cash outflows of $22,961 (2024 $58,728). As at 30 September 2025 the Company had net current assets of $3,575 (31 December 2024: $15,862) and net assets of $28,766 (31 December 2024: $41,053).
These conditions give rise to a material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern, and therefore, that it may be unable to realise its assets and discharge its liabilities in the normal course of business.
Notwithstanding the above, the Directors believe there are reasonable grounds to expect the Company will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report, and that therefore it is appropriate to adopt the going concern basis in the preparation of the annual financial report.
The Directors have prepared a cash flow forecast that indicates that the Company will have a positive cash position and sufficient cash flows to meet its commitments for a period of at least 12 months from the date of this report. Based on the above, the Directors are satisfied that the going concern basis of preparation is appropriate.
Whilst the Directors have every confidence in the above, should these matters not be completed as anticipated and within the timeframe forecasted then whether the Company is able to continue as a going concern and therefore realise its assets and discharge its liabilities in the normal course of business, is uncertain.
5
SQID TECHNOLOGIES LIMITED
Management Discussion and Analysis
For the three months ended 30 September 2025
1.7 – Capital Resources – investments held
The Company holds 1,079,545 shares (3.37%) in Sienna Mining Limited which holds land positions in prospective uranium mining geology in Tanzania. The fair value is determined with reference to the most recent capital raise.
The Company also holds:
- 4,260,000 fully paid ordinary shares at cost of $0.0470 per share and 1,065,000 options in Riva Technology and Entertainment Ltd (RTE - formerly MSM Corporation International Limited). RTE is a digital media entertainment company that specialises in global gaming and Esports. The investment cost base is $200,220, however after fair value losses booked in prior reporting periods the carrying value is $nil, and
- a cryptocurrency under development investment through tagSpace. The investment cost base is $100,000; however, this carrying value is $nil after impairments booked in prior reporting periods
The Company continues to monitor the holdings and engages with management of the investment entities.
1.8 – Off Balance Sheet Arrangements
As at 30 September 2025, there were no off-balance sheet arrangements.
1.9 – Transactions with Related Parties
The Company had the following balances and transactions with key management personnel (directors and executive officers), or companies controlled by these persons and other related parties for the three months ended 30 September 2025 and 30 September 2024 and outstanding payable as at 30 September 2025 and 31 December 2024:
| Transactions | 30 Sep 2025 | 30 Sep 2024 |
|---|---|---|
| Executive remuneration | ||
| Nick Bobir – former CEO- Icon Esports Pty Ltd | ||
| - (short term, post-employment and long term employee benefits) | - | - |
| Sqid Technologies Limited - non-executive director remuneration (1) | ||
| Andrew Sterling | 4,500 | 5,000 |
| Michael Clarke | 4,500 | 5,000 |
| Other key management personnel short term benefits (1) | ||
| Athan Lekkas – CEO & Chair | 10,500 | 12,500 |
| Mark Pryn– CFO | 10,625 | 9,250 |
| Ben Dixon(3) | - | - |
| Other related party transactions | ||
| Shape Capital Pty Ltd | ||
| - Consultancy(2) | - | - |
| Balances – Accounts Payable | 30 Sep 2025 | 31 Dec 2024 |
| Athan Lekkas | 3,850 | 3,750 |
| Andrew Sterling | 1,650 | 1,650 |
| Michael Clarke | 1,650 | 1,500 |
| Mark Pryn (via Salmon Giles Pty Ltd previously Baudin Consulting Pty Ltd) | 2,078 | 1,890 |
6
SQID TECHNOLOGIES LIMITED
Management Discussion and Analysis
For the three months ended 30 September 2025
| - | - | |
|---|---|---|
(1) All key management personnel (executives and directors) invoice for their services monthly in arrears. The invoices are generally paid in full in the following month.
1.10 Subsequent Events
No matter or circumstance has arisen since 31 December 2023 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.
1.11– Fourth Quarter (Q4) –not applicable
1.12 – Proposed Transactions
Nil
1.13(a) – Critical Accounting Estimates
Refer to Note 2 June 30, 2025, Interim Financial Report.
1.13(b) Changes in Accounting Policies – International Financial Reporting Standards (“IFRS”)
Nil
1.14 (a) Fair value measurement
Refer to Note 8 to the 2024 Annual Financial Report.
1.14 (b) – Financial Instruments and Other Instruments
Refer to Note 7 to the June 30, 2025, Interim Financial Report.
1.15 – Other MD&A Requirements
Share Capital
Refer to Note 6 to the June 30, 2025, Interim Financial Report.
7
SQID TECHNOLOGIES LIMITED
Management Discussion and Analysis
For the three months ended 30 September 2025
RISK FACTORS AND UNCERTAINTIES
The Company will continue to actively manage and seek revenue growth opportunities within the payment solutions sector. Further the Company will continue to manage and monitor its investments and its cryptocurrency exposures.
The Company is exposed to the following risks and uncertainties:
-
Risk of no return on investment: There is no assurance that the Company's businesses and investments will be profitable in the future, or that the Company will be able to generate sufficient or any income to meet its obligations. There is no assurance that an investment in our securities will earn a specified rate of return or any return over the life of the Company.
-
Security price volatility: There can be no assurance that an active trading market in our securities will be established and sustained. Factors such as commodity prices, government regulations, interest rates, share price movements of our peer companies and competitors, as well as overall market movements, may have a significant impact on the market price of the securities of our Company. The stock market has from time-to-time experienced extreme price and volume fluctuations, which have often been unrelated to the operating performance of particular companies.
-
Global financial conditions: Global financial conditions over the last few years have been characterised by volatility and the bankruptcy of several financial institutions or the rescue thereof by governmental authorities. These factors may affect the ability of the Company to obtain equity or debt financing on suitable terms in the future. Additionally, these factors, as well as other related factors, may cause asset value impairments which may also adversely impact future cash flows, earnings and the pricing of our securities.
-
Uncertainty of additional financing: There is no assurance future working capital will be adequate to finance business growth objectives. The Company does not have any commitments to obtain additional financing and if required in future, there is no assurance that financing will be available on commercially reasonable terms. The failure to obtain such financing on a timely basis could have a material adverse impact. Equity financing and the additional issuance of equity securities may result in the dilution of existing security holder interests.
-
Acquisition risk: The Company's business growth strategies may include pursuing acquisitions. The successful implementation of acquisitions will depend on a range of factors including due diligence, acquisition costs, funding arrangements, business cultural compatibility and operational integration. To the extent acquisitions are not successfully integrated with Company's existing business, the Company's financial performance could be materially adversely affected. Future acquisitions may involve the issue of Company securities which may dilute existing security holder interests.
-
Unforeseen competition: There can be no assurance that significant competition will not enter the market and offer any number of similar services to those provided by the Company.
-
Technology risk: The Company's, assets and business operations, may be susceptible to rapid technological change and there is no assurance that adequate responses will be made in a timely manner.
-
Access to insurance: The Company may also be subject to or affected by liability or sustain loss risks and hazards against which it cannot insure or which it may elect not to insure because of the cost. This absence of insurance coverage could have an adverse impact on the Company's future cash flows, earnings, results of operations and financial condition.
8
SQID TECHNOLOGIES LIMITED
Management Discussion and Analysis
For the three months ended 30 September 2025
RISK FACTORS AND UNCERTAINTIES (continued)
-
Reliance on directors, officers and other key personnel: The Company has a small management team and the unexpected loss of any of these individuals may have a serious impact on the business. Specifically, the Company is dependent upon the skills of the management team listed in items “Directors and Executive Officers” for the successful operation of its business interests. At present, there is no key-man insurance in place for any members of the management team. The loss of services of any of these personnel to develop the business and make appropriate decisions in respect of the management thereof could have a material adverse effect on the Company's business interests. The Company also relies on consultants to carry out certain business objectives and the unexpected loss of any of these consultants could have a serious impact on the business.
-
Relationships with key third party suppliers and service providers: Any loss of a key third-party supplier or service provider, a material limitation of the services provided, a deterioration in the level of service provided, or a material alteration of the terms on which they are provided, could result in a disruption to its business and may negatively impact Company’s ability to win and retain contracts, each of which could materially adversely affect Company’s future business, operating and financial performance.
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Data security & cybersecurity risks: The Company is subject to Australian Privacy legislation which includes the requirement to report any serious security or privacy breaches. The Company's payment solutions business relies uninterrupted operation of its external payments processing platform provided by Merchant Warrior. Merchant Warrior’s (MW) core technologies and other systems could be exposed to damage or interruption from systems failures, computer viruses, cyber-attacks or other events. MW has detailed merchant vetting / KYC procedures used to detect or mitigate fraud. Merchant accounts all have transaction limits in line with the industry they are in, and all transactions are monitored and assigned a risk score.
-
Non-exhaustive list: The above list of risk factors should not be taken as exhaustive. The above factors and others not yet identified may materially affect future financial performance and the value of our securities.
APPROVAL
The Board of Directors of the Company approved the disclosure contained in this MD&A on 7 November 2025.