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STREAMPLAY STUDIO LIMITED Annual Report 2024
65841_rns_2024-09-29_8a47afe1-d7b2-412f-8c3f-675ba39ff2c5.pdf
Annual Report
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STREAMPLAY STUDIO LIMITED
and its Controlled Entity ABN 31 004 766 376
Financial Report
30 June 2024
Contents
| CORPORATE DIRECTORY | 3 |
|---|---|
| DIRECTORS' REPORT | 4 |
| AUDITOR'S INDEPENDENCE DECLARATION | 14 |
| CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME | 15 |
| CONSOLIDATED STATEMENT OF FINANCIAL POSITION | 16 |
| CONSOLIDATED STATEMENT OF CASH FLOWS | 17 |
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | 18 |
| NOTES TO THE FINANCIAL STATEMENTS | 19 |
| CONSOLIDATED ENTITY DISCLOSURE STATEMENT | 45 |
| DIRECTORS' DECLARATION | 46 |
| INDEPENDENT AUDITOR'S REPORT | 47 |
| ADDITIONAL ASX INFORMATION | 52 |
CORPORATE DIRECTORY
Streamplay Studio Limited (ABN 31 004 766 376)
| Directors | Mr Bert Mondello - Executive ChairmanMr Philip Re - Non-Executive DirectorMr Firdhose Coovadia - Non-Executive Director |
|---|---|
| Company Secretary | Mr Derek Hall |
| Registered Office | Level 5126-130 Philip StreetSydney NSW 2000 |
| Securities Exchange Listing | Australian Securities Exchange (ASX)ASX Code: SP8ASX Cod |
| Share Registry | Automic Registry ServicesLevel 5191 St Georges TerracePERTH WA 6000Phone: +61 8 9324 2099Email: [email protected] |
| Auditor | Hall Chadwick WA Audit Pty Ltd283 Rokeby RoadSubiaco WA 6008 |
| Solicitors | Steinepreis PaganinLevel 14, QV1 Building250 St Georges TerracePerth WA 6000 |
The Directors present their report with respect to the results of Streamplay Studio Limited ("Streamplay" or "the Company") and its controlled entity ("the Group") for the year ended 30 June 2024 ("the Balance Date") and the state of affairs of the Company and the Group at Balance Date.
DIRECTORS
The names of the Company's Directors who held office during the year and until the date of this report are as follows: Mr Bert Mondello (Executive Chairman) Mr Philip Re (Non-executive Director) Mr Firdhose Coovadia (Non-executive Director)
The names, qualifications and experience of the Company's Directors in office during the year and until the date of this report are as follows. Directors were in office for this entire period unless otherwise stated.
Mr Bert Mondello (Executive Chairman) – appointed 16 April 2018 LLB
Mr Bert Mondello has more than 20 years' experience across both the private and public sectors. As an Executive, Mr Mondello has substantial capital markets experience and knowledge of equity markets having participated in company restructures, IPOs, RTOs, investor placements and seed raisings. With experience spanning the retail and institutional sectors and extensive knowledge of marketing communications and investor relations, Mr Mondello has provided strategic corporate advice to a number of organisations across multiple industries. Mr Mondello holds a Bachelor of Laws from The University of Notre Dame, Australia.
Special responsibilities: Remuneration and Nomination Committee Other current directorships of listed companies: Douugh Limited and Vection Technologies Limited Former directorships of Listed Companies in the last three years: WestStar Industrial Limited
Mr Philip Re (Non-executive Director) – appointed 21 June 2017 BBus, CA, CSA, MAICD
Mr Philip Re is a Chartered Accountant, Chartered Secretary and a Member of the Institute of Company Directors who specialises in corporate advisory, corporate governance, mergers and acquisitions and investment banking for ASX listed Companies. Mr Re has held several board positions on various ASX listed companies over the years.
Special responsibilities: Remuneration and Nomination Committee
Other current directorships of listed companies: WestStar Industrial Limited, Corella Resources Ltd and Caprice Resources Ltd Former directorships of Listed Companies in the last three years: Nil
Mr Firdhose Coovadia (Non-executive Director) – appointed 25 October 2018 BCom, BAcc, CA
Mr Coovadia has over 24 years of experience in investment banking, private equity, audit and investment gained in a variety of institutions including, KPMG, UBS Warburg, The National Investor and Essar Global Fund Limited. Mr Coovadia has extensive experience in emerging markets, having been involved in advising governments, parastatals and companies on the African continent, India, Europe, the U.S.A. and in the Middle East. Mr Coovadia is a qualified Chartered Accountant with a bachelors and honours degree in Commerce and Accounting from the University of Witwatersrand, South Africa.
Special responsibilities: Nil Other current directorships of listed companies: Nil Former directorships of Listed Companies in the last three years: Nil
Company Secretary Mr Derek Hall – appointed 16 April 2018 BCom, CA, FGIA, FFin
Mr Hall is a Chartered Accountant, Fellow of the Financial Services Institute and Fellow of the Governance Institute.
Interest in Securities of the Company and related bodies corporate
As at the date of this report, the interest of the directors in the shares and options of Streamplay Studio Limited were:
| Number ofOrdinary Shares | Number ofOptions overOrdinary Shares | Number ofPerformanceShares | |
|---|---|---|---|
| Mr B Mondello | 21,787,502 | - | - |
| Mr P Re | - | - | - |
| Mr F Coovadia | 4,500,000 | - | - |
MEETINGS OF DIRECTORS
During the financial year, six meetings of directors were held. Attendances by each director during the year were as follows:
| Directors' Meetings | ||||
|---|---|---|---|---|
| Eligible to Attend | Attended | |||
| Mr B Mondello | 5 | 5 | ||
| Mr P Re | 5 | 5 | ||
| Mr F Coovadia | 5 | 5 |
PRINCIPAL ACTIVITIES
The principal activity of the Group during the year was operating and further development of a competitive social gaming platform technology offering eSports and gaming experiences through associated white label versions of this platform.
CONSOLIDATED RESULTS
The consolidated operating loss of the Group after income tax amounted to $1,586,095 (2023: loss of $3,450,188).
In terms of operating expenses, the Company posted total expenses of $3.80M (2023: $5.74M) consisting of consulting fees ($497k), research and development cost ($1.08M), allowance for credit losses ($0.88M) with the balance to admin and other costs ($1.35M).
In terms of continuing operations, the Company generated $1,810,946 in ordinary revenues and cash at bank of $14,345,612.
Review of Operations
Streamplay is a leading provider of competitive casual gaming, eSports technology, cloud gaming, music streaming and other value-added services (VAS) . Over the past year, the Company has continued to expand its portfolio of premium products, including the addition of Sports content and an Emergency Airtime & Data lending service, to complement its existing music and gaming entertainment offerings.
Streamplay owns and operates online "Competitive Social Gaming Platform" and bespoke "Cloud Gaming" technologies. This IP and related services enable cutting-edge online casual gaming tournament and competition facilitation platforms where subscribers enter tournaments, play their favourite casual games, and earn rewards and prizes while engaging socially. Music, sports and other entertainment content streaming services also form part of Streamplay's service offering .
Streamplay operates through an established B2B2C business model partnering with multinational Mobile Network Operators ("MNO"s) and distributors in South Africa, Senegal, the Pacific Islands and the United Arab Emirates, namely 'MTN Arena', ' Arena Plus', 'Jabaa Games', 'mGames', 'mJams', and 'PlayStream'. Along with expanding into new markets, the Company has also put considerable effort into launching new platforms, introducing B2C solutions, and exploring alternative commercial and revenue generating models.
Customer receipts are derived from user subscription revenues and token sales. Go-to-Market Strategy Streamplay operates three core go-to-market strategies:
- 1. B2B2C Partnerships with MNOs: This model remains the cornerstone of Streamplay's business, particularly through partnerships with MTN and leading MNO's across the Pacific region.
- 2. B2B Distribution Partnerships: Streamplay continues to expand its reach by partnering with telcos and other businesses to distribute its services.
- 3. B2C Direct Selling: A core focus for the year ahead is to leverage consumer demand for its products directly.
Tournament Platform Technology
Streamplay's platform technology represents an advanced competitive social gaming platform designed to provide a unique gaming experience and content for players across a wide range of game titles and skill levels.
One of the standout features of the tournament platform is its mobile-centric technology, which seamlessly integrates hundreds of casual games. This integration allows players to instantly launch and enjoy embedded games within the platform, all without the need for downloads. This innovation not only ensures automated result tracking but also opens doors to a potential market of 3.2 billion gamers worldwide. Mobile casual and social gamers can now engage in integrated games on their smartphones and tablets, competing for exciting prizes. These integrated casual games are displayed in full screen, delivering a seamless and competitive mobile gaming experience.
Over the past year, Streamplay invested not only in advancing its technology by introducing new features, but also to fully white-label the platforms so as to ensure faster time-to-live deployments in new markets without compromising on flexibility to fully customise and localise each product. These additions have improved the overall efficiency of the product development lifecycle and help ensure that all markets will benefit from future updates without duplication or disruption.
Streamplay has also successfully developed and deployed its own proprietary browser-based game streaming technology, fully owned by the Company. This technology features a configurable touch-enabled on-screen controller for mobile devices as well as the ability to make use of popular physical Xbox or PlayStation gaming controllers paired via Bluetooth. This versatile technology can be seamlessly incorporated into Streamplay's existing competitive social gaming platform or launched as a separate product.
In addition to these developments, Streamplay has taken a significant step by establishing its own game studio dedicated to producing and developing bespoke gaming content. This studio collaborates closely with the Company's game streaming platform developers to create proprietary libraries of short-form, competition-ready premium games, having developed SDK's for both Unity and Unreal game engines. These custom-developed games boast console-quality graphics and immersive sound content, offering players engaging gaming experiences with a strong competitive replay value. Streamplay's game studio aims to leverage advanced game engine tools to deliver cutting-edge content and interactive experiences through efficient and costeffective game development processes.
In the current financial year, Streamplay has:
- Optimized and restructured its operations in the Pacific region, improving efficiency and supporting growth.
- Implemented cost-cutting measures across the group to streamline operations and enhance profitability.
- Signed new partnerships with MNOs in the Pacific, expanding the company's presence and reach.
- Entered into key partnerships with FIPRA to lay the groundwork for promoting mJams in Fiji.
- Made substantial progress in obtaining the necessary regulatory approvals to operate gaming products in Fiji.
- Launched new products in the Pacific, including updates to the mJams and mGames services.
- Launched Jabaa Games in Senegal, marking a significant expansion into the African market.
- Expanded into the UAE with the successful launch of PlayStream, the Company's cloud gaming platform
- Enhanced its cloud gaming offering, particularly in South Africa, driving significant growth in user engagement.
- Engaged in R&D to further improve its game streaming technology, head-to-head competition features, localisation, and AI-powered content for competitive gaming.
- Expanded its social engagement tools and brand engagement features to enhance user interaction across platforms.
Financial Position
The net assets of the Group have decreased from $16,364,390 at 30 June 2023 to $15,051,559 at 30 June 2024. As at the Reporting Date, the Group had working capital of $13,353,457 (2023: $14,582,445).
Business risks
In pursuing its growth plans, the Group faces various company-specific, industry-specific, and general risks, which the Board actively monitor and manage. Key risks include the potential underperformance of new game releases, which could lead to lower than expected revenues and impairments of development costs. Delays in commercial agreements, project launches, reliance on third-party service providers, billable success rates from direct carrier billing, and heightened competition in a rapidly evolving industry also pose significant challenges. Additionally, risks related to data security breaches, intellectual property disputes, and potential litigation could adversely affect the Group's financial performance, reputation, and competitive position.
Business Opportunities
Streamplay continues to identify opportunities for growth through product expansion and new revenue models. The mGames and mJams services, launched in several Pacific markets, along with Jabaa Games in Senegal, are all positioned to become key revenue drivers. The Company plans to introduce ad-supported free access alongside premium subscription offerings, broadening user engagement and increasing revenue potential.
The Company also entered into agreements to launch Emergency Airtime & Data Lending Services in partnership with AV Technologies Limited and bmobile in the Solomon Islands. This essential service is set to provide Pacific telco customers with flexible airtime and data solutions, generating a new revenue stream that complements Streamplay's existing digital services in the region.
In the UAE, the Company has focused on expanding into new markets with minimal financial outlay through the launch of PlayStream, its cloud gaming technology, for subscribers on Etisalat and du networks. Since launch, the platform has shown positive adoption, presenting new opportunities for growth.
Streamplay continues to leverage its long-standing relationship with MTN South Africa, collaborating on the development of new revenue-generating products and bundled services aimed at further diversifying income streams. Additionally, the Company remains focused on potential acquisitions within the gaming space, exploring opportunities that align with its strategic vision for growth and expansion.
DIVIDENDS
No dividends were declared or paid during the financial year.
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
In the opinion of the Directors there were no significant changes in the state of affairs of the Company and its controlled entities that occurred during the financial year under review not otherwise disclosed in this report or the accompanying financial report. Reference should be made to the subsequent events note for changes in the state of affairs after Reporting Date.
MATTERS SUBSEQUENT TO THE END OF FINANCIAL YEAR
No matter or circumstance has arisen since 30 June 2024 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.
FUTURE DEVELOPMENTS
Other than information disclosed elsewhere in this annual report, likely future developments in the operations of the Group and the expected results of those operations in future financial years has not been included in this Directors' Report because the Directors believe, on reasonable grounds, that to include such information would be likely to result in unreasonable prejudice to the Group.
ENVIRONMENTAL REGULATION AND PERFORMANCE
The Group's operations are not currently subject to any significant environmental regulations under either Commonwealth or State law.
INDEMNITY AND INSURANCE OF OFFICERS
During the financial year, the Company paid a premium in respect of a contract insuring the Directors of the Company (as named above), the company secretary, and all executive officers of the Company and of any related body corporate against a liability incurred as such a director, secretary or executive officer to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium.
The Company has not otherwise, during or since the end of the financial year, except to the extent permitted by law, indemnified or agreed to indemnify an officer or auditor of the Company or of any related body corporate against a liability incurred as such an officer or auditor.
PROCEEDINGS ON BEHALF OF COMPANY
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the Company or intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those proceedings. No proceedings have been brought or intervened in or on behalf of the Company with leave of the court under section 237 of the Corporations Act 2001.
NON-AUDIT SERVICES
During the year, no non-audit services were provided by the Company's auditor Hall Chadwick WA Audit Pty Ltd.
AUDITOR'S INDEPENDENCE DECLARATION
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 for the year ended 30 June 2024 has been received and can be found on page 14 of this report.
REMUNERATION REPORT (Audited)
This report outlines the remuneration arrangements in place for Directors and executives of Streamplay Studio Limited in accordance with the requirements of the Corporation Act 2001 and its Regulations.
For the purpose of this report, Key Management Personnel (KMP) of the Company are defined as those persons having authority and responsibility for planning, directing and controlling the major activities of the Group, directly or indirectly, including any director (whether executive or otherwise) of the Group.
Details of key management personnel
| Mr Bert Mondello | Executive Chairman | Appointed 16 April 2018 |
|---|---|---|
| Mr Philip Re | Non-Executive Director | Appointed 21 June 2017 |
| Mr Firdhose Coovadia | Non-Executive Director | Appointed 25 October 2018 |
Remuneration Policy
The remuneration policy of Streamplay Studio Limited has been designed to align director and executive objectives with shareholder and business objectives by providing a fixed remuneration component and offering specific long-term incentives.
The Board of Streamplay Studio Limited believes the remuneration policy to be appropriate and effective in its ability to attract and retain the best executives and directors to run and manage the Group, as well as create goal congruence between directors, executives and shareholders.
The Board's policy for determining the nature and amount of remuneration for board members and senior executives of the Group is as follows:
- The remuneration policy, setting the terms and conditions for the executive directors and other senior executives, is developed and approved by the board after seeking professional advice from independent external consultants as required. In the years presented, no external consultants have been used.
- All executives receive a base salary or fee (which is based on factors such as length of service and experience).
- The board reviews executive packages annually by reference to the Group's performance, executive performance and comparable information from industry sectors.
Voting and comments made at the Company's 2023 Annual General Meeting
Streamplay Studio Limited received more than 82% of "yes" votes on its remuneration report for the 2023 financial year. The Company did not receive any specific feedback at the AGM or throughout the year on its remuneration practices.
Loans to Directors and Executives
There were no loans to directors and executives during the financial year ended 30 June 2024.
Director Remuneration
The Board policy is to remunerate directors at market rates for time, commitment and responsibilities. The Board determines payments to the directors and reviews their remuneration annually, based on market practice, duties and accountability. Independent external advice is sought when required. In the current year, no advice was sought.
Upon appointment to the Board, all directors enter into a service agreement with the Company in the form of a letter of appointment. The letter summarises the policies and terms, including compensation, relevant to the office of the director.
The key terms of the non-executive director service agreements are as follows:
- Term of Agreement ongoing subject to annual review and the Company's constitution
- Non-Executive Directors' Fees of $48,000 per annum
- There is a 6-month notice period stipulated to terminate the contract by either party
The key terms of the executive director service agreements are as follows:
- Term of Agreement ongoing subject to annual review and the Company's constitution
- Executive Chairman's Fees of $90,000 per annum
- There is a 6-month notice period stipulated to terminate the contract by either party
The maximum aggregate amount of fees that can be paid to non-executive directors is currently fixed at $250,000 with any change in this amount subject to approval by shareholders at the Annual General Meeting.
The Company does not have a Director's Retirement Scheme in place at present.
Service Contracts
It is the Company's policy that service contracts for executive directors and senior executives be entered into. A service contract with an executive director or senior executive would provide for the payment of benefits where the contract is terminated by the entity or the individual.
The executive directors and senior executives would also be entitled to receive on termination of employment their statutory entitlements of accrued annual and long service leave, together with any superannuation benefits. An executive director or senior executive would have no entitlement to termination payment in the event of removal for misconduct.
Remuneration of key management personnel
Table 1: Remuneration for the year ended 30 June 2024
| Key Management | Short-term BenefitsCash, salary and | Share-basedPaymentShares and | Postemployment | Remunerationconsisting ofshares andoptions for | |
|---|---|---|---|---|---|
| Personnel – 30 June 2024 | commissions | Options | Benefits | Total | the year |
| $ | $ | $ | $ | % | |
| Non-Executive Directors | |||||
| Mr P Re | 48,000 | - | - | 48,000 | 0% |
| Mr F Coovadia | 48,000 | - | - | 48,000 | 0% |
| Executive Directors | |||||
| Mr B Mondello* | 82,500 | - | - | 82,500 | 0% |
| Total | 178,500 | - | - | 178,500 |
*Mr B Mondello acting as Executive Chairman on 1 October 2023.
Table 2: Remuneration for the year ended 30 June 2023
| Key Management | Short-term BenefitsCash, salary and | Share-basedPaymentShares and | Postemployment | Remunerationconsisting ofshares andoptions for | |
|---|---|---|---|---|---|
| Personnel – 30 June 2023 | commissions | Options | Benefits | Total | the year |
| $ | $ | $ | $ | % | |
| Non-Executive Directors | |||||
| Mr B Mondello | 60,000 | 77,050 | - | 137,050 | 56% |
| Mr P Re | 48,000 | 77,050 | - | 125,050 | 62% |
| Mr F Coovadia | 48,000 | 77,050 | - | 125,050 | 62% |
| Mr G Stevens* | 99,000 | 77,050 | - | 176,050 | 44% |
| Mr J Hart* | 52,000 | 77,050 | - | 129,050 | 60% |
| Total | 307,000 | 385,250 | - | 692,250 |
*Mr G Stevens and Mr J Hart resigned as director on 28 November 2022 and 21 November 2022 respectively.
Compensation Options: Granted and vested during the year (consolidated)
There were no compensation options granted to or exercised by directors or other Key Management Personnel during the financial year. In addition, no directors or senior executives exercised options that were granted to them as part of their compensation during the financial year.
Share-based payment arrangements relating to key management personnel
There were no new grants of share-based payments to key management personnel during the year. The value attributed in the current year to share based payments relates to the value of securities vested, granted as compensation in the 2021 financial year.
Table 3: Shareholdings of key management personnel (consolidated)
Shares held in Streamplay Studio Limited (number) by key management personnel are:
| Share holdings of keymanagement personnel | Balance1.7.2023Ord | Granted ascompensationOrd | Net ChangeOtherOrd | Balance30.6.2024Ord | |
|---|---|---|---|---|---|
| Directors | |||||
| Mr B Mondello | 21,787,502 | - | - | 21,787,502 | |
| Mr P Re | - | - | - | - | |
| Mr F Coovadia | 4,500,000 | - | - | 4,500,000 | |
| Total | 26,287,502 | - | - | 26,287,502 |
Table 4: Option holdings of key management personnel (consolidated)
The numbers of options over ordinary shares in the company held during the financial year by each director of Streamplay Studio Limited and specified executives of the Group, including their personally related parties, are set out below:
| Option holdings of keymanagement personnel | Balance1.7.2023Options | Granted ascompensationOptions | Net ChangeOtherOptions | Balance30.6.2024Options | Number ofOptionsVested andExercisable |
|---|---|---|---|---|---|
| Directors | |||||
| Mr B Mondello | - | - | - | - | - |
| Mr P Re | - | - | - | - | - |
| Mr F Coovadia | - | - | - | - | - |
| Total | - | - | - | - | - |
Table 5: Performance-based remuneration (consolidated)
The numbers of performance shares in the company held during the financial year by each director of Streamplay Studio Limited and specified executives of the Group, including their personally related parties, are set out below:
| Performancebasedremuneration(consolidated) | Balance as at1.07.2023No. ofperformanceshares | No. ofperformancesharesgrantedduring theyear | No. ofperformanceshares expiredduring theyear | Balance as at30.6.2024No. ofperformanceshares | Performanceshares Class | Fair value ofperformanceshares |
|---|---|---|---|---|---|---|
| Directors | ||||||
| Mr B Mondello | 1,500,000 | - | (1,500,000) | - | Tranche 1 | 26,550 |
| 1,500,000 | - | (1,500,000) | - | Tranche 2 | 25,650 | |
| 1,500,000 | - | (1,500,000) | - | Tranche 3 | 24,850 | |
| 4,500,000 | - | (4,500,000) | - | 77,050 | ||
| Mr P Re | 1,500,000 | - | (1,500,000) | - | Tranche 1 | 26,550 |
| 1,500,000 | - | (1,500,000) | - | Tranche 2 | 25,650 | |
| 1,500,000 | - | (1,500,000) | - | Tranche 3 | 24,850 | |
| 4,500,000 | - | (4,500,000) | - | 77,050 | ||
| Mr F Coovadia | 1,500,000 | - | (1,500,000) | - | Tranche 1 | 26,550 |
| 1,500,000 | - | (1,500,000) | - | Tranche 2 | 25,650 | |
| 1,500,000 | - | (1,500,000) | - | Tranche 3 | 24,850 | |
| 4,500,000 | - | (4,500,000) | - | 77,050 | ||
| Total | 13,500,000 | - | (13,500,000) | - | 231,150 |
The milestone conditions attached to each class of performance share for conversion to fully paid ordinary shares were as follows:
Tranche 1: The Company's 14 day volume weighted average share price is equal to or exceeds a market capitalisation of AUD$135,000,000 subject to the relevant person being a director at this time.
Tranche 2: The Company's 14 day volume weighted average share price is equal to or exceeds a market capitalisation of AUD$150,000,000 subject to the relevant person being a director at this time.
Tranche 3: The Company's 14 day volume weighted average share price is equal to or exceeds a market capitalisation of AUD$165,000,000 subject to the relevant person being a director at this time.
Related party transactions with key management personnel
Other than as disclosed in Note 21 there were no other transactions with Key management personnel.
[END OF REMUNERATION REPORT]
Signed in accordance with a resolution of the Board of Directors made pursuant to s.298(2) of the Corporations Act 2001 (Cth).
BERT MONDELLO Chairman
Dated this 30th day of September 2024.
To the Board of Directors,
AUDITOR'S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001
As lead audit director for the review of the financial statements of Streamplay Studio Limited for the financial year ended 30 June 2024, I declare that to the best of my knowledge and belief, there have been no contraventions of:
- the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
- any applicable code of professional conduct in relation to the audit.
Yours Faithfully,
HALL CHADWICK WA AUDIT PTY LTD CHRIS NICOLOFF FCA
Dated this 30th day of September 2024 Perth, Western Australia
Director
14
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
| 2024 | 2023 | ||
|---|---|---|---|
| Note | |||
| s | $ | $ | |
| Continuing Operations | |||
| Revenue from operating activities | 3(a) | 1,810,946 | 1,761,815 |
| Cost of Goods sold | (1,453,761) | (1,146,169) | |
| Gross profit | 357,185 | 615,646 | |
| Other income | 3(b) | 1,475,255 | 684,588 |
| Operating expenses | (201,329) | (216,499) | |
| Foreign exchange losses | (19,346) | (25,314) | |
| Administration expenses | (99,190) | (207,506) | |
| Consulting expenses | 3(c) | (497,403) | (869,670) |
| Depreciation and amortisation | (10,567) | (8,590) | |
| Employee benefits expense | (218,576) | (93,310) | |
| Finance costs | (91,600) | (104) | |
| Allowance for credit losses | (879,915) | (2,660,544) | |
| Research and Development | (1,078,240) | (1,051,279) | |
| Marketing expenses | (279,813) | (351,435) | |
| Professional expenses | 3(d) | (157,278) | (176,298) |
| Public Relations | - | (3,300) | |
| Share based payment expenses | (273,264) | (77,028) | |
| Total Operating Expenses | (3,806,521) | (5,740,877) | |
| Profit/(Loss) before income tax from continuing operations | (1,974,081) | (4,440,643) | |
| Income tax benefit/ (expenses) | 4(a) | 431,687 | 990,455 |
| Profit/(Loss) after income tax for the year | (1,542,394) | (3,450,188) | |
| Items that may be reclassified subsequently to Profit or loss | |||
| Other comprehensive income/(loss), net of income tax | (43,701) | (30,059) | |
| Total comprehensive profit/(loss) for the year | (1,586,095) | (3,480,247) | |
| Profit/ (Loss) attributable to: | |||
| Members of the parent | (1,586,095) | (3,450,188) | |
| (1,586,095) | (3,450,188) | ||
| Total comprehensive profit/(loss) attributable to: | |||
| Members of the parent | (1,586,095) | (3,480,247) | |
| (1,586,095) | (3,480,247) | ||
| Earnings/(Loss) per share | |||
| Basic and diluted earnings/ (loss) per share (cents per share) | 5 | (0.13) | (0.31) |
| Overall Basic and diluted earnings/ (loss) per share (cents per | |||
| share) | 5 | (0.13) | (0.31) |
The accompanying notes form part of this Consolidated Statement of Profit or Loss and Other Comprehensive Income.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024
| 2024 | 2023 | ||
|---|---|---|---|
| Notes | $ | $ | |
| Current Assets | |||
| Cash and cash equivalents | 6 | 14,345,612 | 6,403,743 |
| Trade and other receivables | 7 | 375,459 | 722,623 |
| Investment | 10 | - | 9,000,000 |
| Total Current Assets | 14,721,071 | 16,126,366 | |
| Non-current Assets | |||
| Property, plant and equipment | 11 | 11,407 | 13,193 |
| Goodwill | 8,9 | - | 800,000 |
| Intangible assets | 12 | 1,953 | 2,929 |
| Deferred tax assets | 4(b) | 1,684,742 | 1,278,323 |
| Total Non-current Assets | 1,698,102 | 2,094,445 | |
| Total Assets | 16,419,173 | 18,220,811 | |
| Current Liabilities | |||
| Trade and other payables | 13 | 249,556 | 410,458 |
| Provision of VAT payable | 120,000 | 120,000 | |
| Provision of tax payable | 4(a) | 965,793 | 965,793 |
| Provision | 16,605 | 6,742 | |
| Deferred tax liability | 4(b) | 15,660 | 40,928 |
| Total Current Liabilities | 1,367,617 | 1,543,921 | |
| Non-current Liabilities | |||
| Deferred considerations | - | 312,500 | |
| Total Non-current Liabilities | - | 312,500 | |
| Total Liabilities | 1,367,617 | 1,856,421 | |
| Net Assets | 15,051,559 | 16,364,390 | |
| Equity | 72,489,016 | 72,401,516 | |
| Issued capital | 14 | 190,952 | 1,204,639 |
| ReservesAccumulated losses | 15(a)15(b) | (57,628,409) | (57,241,765) |
| Total equity | 15,051,559 | 16,364,390 |
The accompanying notes form part of this Consolidated Statement of Financial Position.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
| 2024 | 2023 | ||
|---|---|---|---|
| Notes | $ | $ | |
| Cash flows from operating activities | |||
| Receipts from customers | 906,232 | 815,230 | |
| Payments to suppliers and employees | (3,374,534) | (3,332,473) | |
| Interest received / (paid) | 582,095 | 345,365 | |
| Income tax paid | - | (899,539) | |
| Other receipts | 835,881 | 99,053 | |
| Net cash used in operating activities | 6 | (1,050,326) | (2,972,364) |
| Cash flows from investing activities | |||
| Purchase of plant and equipment | (7,805) | (10,465) | |
| Withdrawal/ (placement) of term deposits | 9,000,000 | (9,000,000) | |
| Proceeds from sale of business | - | 203,725 | |
| Purchase of business | - | (487,500) | |
| Disposal of business | - | 802,792 | |
| Net cash (used in) / provided by investing activities | 8,992,195 | (8,491,448) | |
| Net increase/(decrease) in cash and cash equivalents | 7,941,869 | (11,463,812) | |
| Cash and cash equivalents at the beginning of the year | 6,403,743 | 17,867,555 | |
| Effects of exchange rate changes | - | - | |
| Cash and cash equivalents at the end of the year | 6 | 14,345,612 | 6,403,743 |
The accompanying notes form part of this Consolidated Statement of Cash Flows.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
| IssuedCapital | AccumulatedLosses | OptionReserve | RevaluationReserve | TotalEquity | ||
|---|---|---|---|---|---|---|
| Notes | $ | $ | $ | $ | $ | |
| Balance at 1 July 2022 | 72,209,737 | (53,791,577) | 849,449 | 14,937 | 19,282,546 | |
| Loss for the year | - | (3,450,188) | - | - | (3,450,188) | |
| Other comprehensive income | - | - | - | (44,997) | (44,997) | |
| Total comprehensive income for the year | - | (3,450,188) | - | (44,997) | (3,495,185) | |
| Exercise of options | 14 | 191,779 | - | - | - | 191,779 |
| Recognition of share-based payments | 15 | - | - | 385,250 | - | 385,250 |
| Balance at 30 June 2023 | 14,15 | 72,401,516 | (57,241,765) | 1,234,699 | (30,060) | 16,364,390 |
| Balance at 1 July 2023 | 72,401,516 | (57,241,765) | 1,234,699 | (30,060) | 16,364,390 | |
| Loss for the year | - | (1,542,394) | - | - | (1,542,394) | |
| Other comprehensive (loss) | - | - | - | (43,701) | (43,701) | |
| Total comprehensive loss for the yearTransactions with owners in their | - | (1,542,394) | - | (43,701) | (1,586,095) | |
| capacity as owners | - | |||||
| Issue of sharesExpiry of performance rights | 1415(a),(b) | 87,500- | -1,155,750 | -(1,155,750) | - | 87,500- |
| Recognition of share-based payments | 15 | - | - | 185,764 | - | 185,764 |
| Balance at 30 June 2024 | 14,15 | 72,489,016 | (57,628,409) | 264,713 | (73,761) | 15,051,559 |
The accompanying notes form part of this Consolidated Statement of Changes in Equity.
1 CORPORATE INFORMATION
The financial report of Streamplay Studio Limited and its Controlled Entity (the Group) for the year ended 30 June 2024 was authorised for issue in accordance with a resolution of the directors on 30 September 2024.
Streamplay Studio Limited which is the ultimate parent company, is a company limited by shares incorporated in Australia whose shares are publicly traded on the Australian Securities Exchange. The nature of the operations and principal activities of the Group is the development and operation of online eSport gaming platforms.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of Preparation
The financial report is a general purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001 and applicable Australian Accounting Standards. The financials also comply with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).
The consolidated financial statements have been prepared on the basis of historical cost as explained in the accounting policies below. Historical cost is generally based on the fair values of the consideration given in exchange for goods and services. All amounts are presented in Australian dollars, unless otherwise noted. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Group takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these consolidated financial statements is determined on such a basis, except for share-based payment transactions that are within the scope of AASB 2, leasing transactions that are within the scope of AASB 117, and measurements that have some similarities to fair value but are not fair value, such as net realisable value in AASB 2 or value in use in AASB 136.
In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:
- Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;
- Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and
- Level 3 inputs are unobservable inputs for the asset or liability.
For the purpose of preparing the financial statements, the consolidated entity is a for-profit entity.
(b) New Standards and Interpretations Adopted
Standards and Interpretations applicable to 30 June 2024
In the year ended 30 June 2024, the Directors have reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to the Company and effective for the current annual reporting period.
As a result of this review, the Directors have determined that there is no material impact of the new and revised Standards and Interpretations on the Company and, therefore, no material change is necessary to Group accounting policies.
Standards and Interpretations in issue not yet adopted
The Directors have also reviewed all Standards and Interpretations in issue but not yet adopted for the year ended 30 June 2024. As a result of this review the Directors have determined that there is no material impact, of the Standards and Interpretations in issue but not yet adopted on the Group and, therefore, no change is necessary to Group accounting policies.
(c) Basis of consolidation
The consolidated financial statements comprise the financial statements of Streamplay Studio Limited and its entity controlled by Streamplay Studio Limited (its subsidiary).
Control is achieved when the Company:
- has power over the investee;
- is exposed, or has rights, to variable returns from its involvement with the investee; and
- has the ability to use its power to affect its returns.
The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above.
The financial statements of subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. Adjustments are made to bring into line any dissimilar accounting policies that may exist. All inter-company balances and transactions, including unrealised profits arising from intra-group transactions, have been eliminated in full. Unrealised losses are eliminated unless costs cannot be recovered.
Subsidiaries are consolidated from the date on which control is transferred to the group and cease to be consolidated from the date on which control is transferred out of the Group. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.
Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statement of comprehensive income from the date the Company gains control until the date when the Company ceases to control the subsidiary.
When the Group loses control of a subsidiary, a gain or loss is recognised in profit or loss and is calculated as the difference between:
- The aggregate of the fair value of the consideration received and the fair value of any retained interest; and
- The previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any noncontrolling interests.
All amounts previously recognised in other comprehensive income in relation to that subsidiary are accounted for as if the Group had directly disposed of the related assets or liabilities of the subsidiary (i.e. reclassified to profit and loss or transferred to another category of equity as specified/permitted by the applicable AASBs). The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting under AASB 139, when applicable, the cost on initial recognition of an investment in an associate or a joint venture.
(d) Foreign currency translation
Both the functional and presentation currency of Streamplay Studio Limited and its Australian subsidiaries is Australian dollars ($AUD). Transactions in foreign currencies are initially recorded in the functional currency at the exchange rates ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the statement of financial position date.
All differences in the consolidated financial report are taken to the statement of profit or loss and other comprehensive income with the exception of differences on foreign currency borrowings that provide a hedge against a net investment in a foreign entity. These are taken directly to equity until the disposal of the net investment, at which time they are recognised in the statement of profit or loss and other comprehensive income.
Tax charges and credits attributable to exchange differences on those borrowings are also recognised in equity. Nonmonetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the date of the initial transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined.
(d) Foreign currency translation (continued)
As at the reporting date the assets and liabilities of overseas subsidiaries are translated into the presentation currency of Streamplay Studio Limited at the rate of exchange ruling at the statement of financial position date and the statements of profit or loss and other comprehensive income are translated at the weighted average exchange rates for the year. The exchange differences arising on the retranslation are taken directly to a separate component of equity.
On disposal of a foreign entity, the deferred cumulative amount recognised in equity relating to that particular foreign operation is recognised in the statement of profit or loss and other comprehensive income.
(e) Cash and cash equivalents
Cash and short-term deposits in the statement of financial position comprise cash at bank and in hand and short-term deposits with an original maturity of three months or less. For the purposes of the statement of cash flows, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts.
(f) Trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 30 days. The consolidated entity has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
(g) Property, plant and equipment
Leasehold improvements, buildings and plant and equipment are stated at cost less accumulated depreciation and any impairment losses recognised.
Depreciation is calculated on a diminishing value basis over the estimated useful life of the asset as follows: Computer equipment – over 3 to 5 years Office equipment – over 5 to 10 years
Impairment
The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.
For an asset that does not generate largely independent cash flows, the recoverable amount is determined for the cashgenerating unit to which the asset belongs. If any such indication exists and where the carrying values exceed the estimated recoverable amount, the assets or cash-generating units are written down to their recoverable amount.
The recoverable amount of plant and equipment is the greater of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
Impairment losses are recognised in the statement of profit or loss and other comprehensive income.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued used of the asset.
Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the item) is included in the statement of profit or loss and other comprehensive income in the period the item is derecognised.
(h) Recoverable amount of assets
At each reporting date, the Group assesses whether there is any indication that an asset may be impaired. Where an indicator of impairment exists, the Group makes a formal estimate of recoverable amount. Where the carrying amount of an asset exceeds its recoverable amount the asset is considered impaired and is written down to its recoverable amount.
Recoverable amount is the greater of fair value less costs to sell and value in use. It is determined for an individual asset, unless the asset's value in use cannot be estimated to be close to its fair value less costs to sell and it does not generate cash inflows that are largely independent of those from other assets or groups of assets, in which case, the recoverable amount is determined for the cash-generating unit to which the asset belongs.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
(i) Trade and other payables
Trade and other payables are carried at amortised cost and due to their short term nature they are not discounted. They represent liabilities for goods and services provided to the Group prior to the end of the financial year that are unpaid and arise when the Group becomes obliged to make future payments in respect of the purchase of these goods and services. The amounts are unsecured and are usually paid within 30 days of recognition.
(j) Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
Where the Group expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the statement of profit or loss and other comprehensive income net of any reimbursement.
If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.
Where discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.
(k) Loans and borrowings
Loans and borrowings are initially recognised at the fair value of the consideration received.
After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method. Amortised cost is calculated by taking into account any issue costs and any discount or premium on settlement.
(l) Contributed equity
Ordinary share capital is recognised at the fair value of the consideration received. Any transaction costs arising on the issue of shares are recognised directly in equity as a reduction of the share proceeds received.
(m) Share-based payment transactions
The Group provides remuneration to employees (including directors) of the Group in the form of share-based payment transactions, whereby employees render services in exchange for shares or rights over shares ('equity-settled transactions').
The cost of these equity-settled transactions with employees is measured by reference to the fair value at the date at which they are granted. The fair value is determined by using the either the Binomial or Black-Scholes model taking into account the terms and conditions upon which the instruments were granted.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in which the performance conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award ('vesting date').
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date reflects -
- (i) the extent to which the vesting period has expired, and
- (ii) the number of awards that, in the opinion of the directors of the Group, will ultimately vest.
This opinion is formed based on the best available information at balance sheet date. No adjustment is made for the likelihood of market performance conditions being met as the effect of these conditions is included in the determination of fair value at grant date.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a market condition.
Where the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the terms had not been modified. In addition, an expense is recognised for any increase in the value of the transaction as a result of the modification, as measured at the date of modification.
Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not yet recognised for the award is recognised immediately. However, if a new award is substituted for the cancelled award, and designated as a replacement award on the date that it is granted, the cancelled and new award are treated as if they were a modification of the original award, as described in the previous paragraph.
The dilutive effect, if any, of outstanding options is reflected as additional share dilution in the computation of earnings per share (see Note 5).
(n) Revenue
Revenue from contracts with customers
The Group recognises revenue when it transfers control of a product or service to a customer and the cost incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue is recognised at an amount that reflects the consideration to which the group is expected to be entitled in exchange for transferring goods or services to a customer. For each contract with a customer, the group identifies the contract with a customer; identifies the performance obligations in the contract; determines the transaction price which takes into account estimates of variable consideration and the time value of money; allocates the transaction price to the separate performance obligations on the basis of the relative stand-alone selling price of each distinct good or service to be delivered; and recognises revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of the goods or services promised.
(n) Revenue (continued)
Variable consideration within the transaction price, if any, reflects concessions provided to the customer such as discounts, rebates and refunds, any potential bonuses receivable from the customer and any other contingent events. Such estimates are determined using either the 'expected value' or 'most likely amount' method. The measurement of variable consideration is subject to a constraining principle whereby revenue will only be recognised to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur. The measurement constraint continues until the uncertainty associated with the variable consideration is subsequently resolved. Amounts received that are subject to the constraining principle are initially recognised as deferred revenue in the form of a separate refund liability.
Rendering of services
Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date.
Interest
Revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset.
Sponsorship, marketing and advertising services revenue
Sponsorship, marketing and advertising services revenue is recognised at a point in time which the services have been provided and where the amount can be reliably estimated and is considered recoverable.
Government incentives received
Incentives received for research and development and other tax initiatives are recognised as revenue in the period in which they are received.
All revenue is stated net of the amount of goods and services tax (GST).
(o) Income tax
In principle, deferred income tax is provided on all temporary differences at the statement of financial position date between the tax bases of assets and liabilities and their carrying amounts for the financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences:
- except where the deferred income tax liability arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and
- in respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, except where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry-forward of unused tax credits and unused tax losses can be utilised:
- except where the deferred income tax asset relating to the deductible temporary differences arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and
- in respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred tax assets are only recognised to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised.
(o) Income tax (continued)
The carrying amount of deferred income tax assets is reviewed at each statement of financial position date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the statement of financial position date.
Income taxes relating to items recognised directly in equity are recognised in equity and not in the statement of profit or loss and other comprehensive income.
(p) Financial instruments
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions to the instrument. For financial assets, this is the date that the Group commits itself to either the purchase or sale of the asset (ie trade date accounting is adopted).
Financial instruments (except for trade receivables) are initially measured at fair value plus transaction costs, except where the instrument is classified "at fair value through profit or loss", in which case transaction costs are expensed to profit or loss immediately. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted.
Trade receivables are initially measured at the transaction price if the trade receivables do not contain a significant financing component or if the practical expedient was applied as specified in AASB 15.63.
Classification and subsequent measurement
Financial liabilities
Financial instruments are subsequently measured at:
- amortised cost; or
- fair value through profit or loss.
A financial liability is measured at fair value through profit and loss if the financial liability is:
- a contingent consideration of an acquirer in a business combination to which AASB 3: Business Combinations applies;
- held for trading; or
- initially designated as at fair value through profit or loss.
All other financial liabilities are subsequently measured at amortised cost using the effective interest method.
The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest expense in profit or loss over the relevant period. The effective interest rate is the internal rate of return of the financial asset or liability. That is, it is the rate that exactly discounts the estimated future cash flows through the expected life of the instrument to the net carrying amount at initial recognition.
A financial liability is held for trading if:
- it is incurred for the purpose of repurchasing or repaying in the near term;
- part of a portfolio where there is an actual pattern of short-term profit taking; or
- a derivative financial instrument (except for a derivative that is in a financial guarantee contract or a derivative that is in an effective hedging relationships).
Any gains or losses arising on changes in fair value are recognised in profit or loss to the extent that they are not part of a designated hedging relationship are recognised in profit or loss.
The change in fair value of the financial liability attributable to changes in the issuer's credit risk is taken to other comprehensive income and are not subsequently reclassified to profit or loss.
(p) Financial instruments (continued)
Instead, they are transferred to retained earnings upon derecognition of the financial liability. If taking the change in credit risk in other comprehensive income enlarges or creates an accounting mismatch, then these gains or losses should be taken to profit or loss rather than other comprehensive income.
A financial liability cannot be reclassified.
Financial assets
Financial assets are subsequently measured at:
- amortised cost;
- fair value through other comprehensive income; or
- fair value through profit or loss.
Measurement is on the basis of two primary criteria:
- the contractual cash flow characteristics of the financial asset; and
- the business model for managing the financial assets.
A financial asset that meets the following conditions is subsequently measured at amortised cost:
- the financial asset is managed solely to collect contractual cash flows; and
- the contractual terms within the financial asset give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding on specified dates.
A financial asset that meets the following conditions is subsequently measured at fair value through other comprehensive income:
- the contractual terms within the financial asset give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding on specified dates;
- the business model for managing the financial assets comprises both contractual cash flows collection and the selling of the financial asset.
By default, all other financial assets that do not meet the measurement conditions of amortised cost and fair value through other comprehensive income are subsequently measured at fair value through profit or loss.
The Group initially designates a financial instrument as measured at fair value through profit or loss
- if:
- it eliminates or significantly reduces a measurement or recognition inconsistency (often referred to as "accounting mismatch") that would otherwise arise from measuring assets or liabilities or recognising the gains and losses on them on different bases;
- it is in accordance with the documented risk management or investment strategy, and information about the groupings was documented appropriately, so that the performance of the financial liability that was part of a Group of financial liabilities or financial assets can be managed and evaluated consistently on a fair value basis;
- it is a hybrid contract that contains an embedded derivative that significantly modifies the cash flows otherwise required by the contract.
The initial designation of the financial instruments to measure at fair value through profit or loss is a one-time option on initial classification and is irrevocable until the financial asset is derecognised.
Equity instruments
At initial recognition, as long as the equity instrument is not held for trading and not a contingent consideration recognised by an acquirer in a business combination to which AASB 3:Business Combinations applies, the Group has the option to make an irrevocable election to measure any subsequent changes in fair value of the equity instruments in other comprehensive income, while the dividend revenue received on underlying equity instruments investment will still be recognised in profit or loss. The Group currently has no equity instrument financial assets.
Regular way purchases and sales of financial assets are recognised and derecognised at settlement date in accordance with the Group's accounting policy.
(p) Financial instruments (continued)
Derecognition
Derecognition refers to the removal of a previously recognised financial asset or financial liability from the statement of financial position.
Derecognition of financial liabilities
A liability is derecognised when it is extinguished (ie when the obligation in the contract is discharged, cancelled or expires). An exchange of an existing financial liability for a new one with substantially modified terms, or a substantial modification to the terms of a financial liability is treated as an extinguishment of the existing liability and recognition of a new financial liability.
The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss.
Derecognition of financial assets
A financial asset is derecognised when the holder's contractual rights to its cash flows expires, or the asset is transferred in such a way that all the risks and rewards of ownership are substantially transferred.
All of the following criteria need to be satisfied for derecognition of financial asset:
- the right to receive cash flows from the asset has expired or been transferred;
- all risk and rewards of ownership of the asset have been substantially transferred; and
- the Group no longer controls the asset (ie the Group has no practical ability to make a unilateral decision to sell the asset to a third party).
On derecognition of a financial asset measured at amortised cost, the difference between the asset's carrying amount and the sum of the consideration received and receivable is recognised in profit or loss.
On derecognition of a debt instrument classified as at fair value through other comprehensive income, the cumulative gain or loss previously accumulated in the investment revaluation reserve is reclassified to profit or loss.
On derecognition of an investment in equity which was elected to be classified under fair value through other comprehensive income, the cumulative gain or loss previously accumulated in the investment revaluation reserve is not reclassified to profit or loss, but is transferred to retained earnings.
Impairment
The Group recognises a loss allowance for expected credit losses on:
- financial assets that are measured at amortised cost or fair value through other comprehensive income;
- contract assets (eg amounts due from customers under service contracts);
- loan commitments that are not measured at fair value through profit or loss; and
- financial guarantee contracts that are not measured at fair value through profit or loss.
Loss allowance is not recognised for:
- financial assets measured at fair value through profit or loss; or
- equity instruments measured at fair value through other comprehensive income.
Expected credit losses are the probability-weighted estimate of credit losses over the expected life of a financial instrument. A credit loss is the difference between all contractual cash flows that are due and all cash flows expected to be received, all discounted at the original effective interest rate of the financial instrument.
The Group uses the following approach to impairment, as applicable under AASB 9: Financial Instruments:
-
- the simplified approach
Simplified approach
The simplified approach does not require tracking of changes in credit risk at every reporting period, but instead requires the recognition of lifetime expected credit loss at all times. This approach is applicable to:
(p) Financial instruments (continued)
- trade receivables or contract assets that result from transactions within the scope of AASB 15: Revenue from Contracts with Customers and which do not contain a significant financing component
In measuring the expected credit loss, a provision matrix for trade receivables is used taking into consideration various data to get to an expected credit loss (ie diversity of customer base, appropriate groupings of historical loss experience, etc).
Recognition of expected credit losses in financial statements
At each reporting date, the Group recognises the movement in the loss allowance as an impairment gain or loss in the statement of profit or loss and other comprehensive income. The carrying amount of financial assets measured at amortised cost includes the loss allowance relating to that asset.
(q) Other taxes
Revenues, expenses and assets are recognised net of the amount of GST except:
- where the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and
- receivables and payables are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the statement of financial position. Cash flows are included in the Cash Flow statement on a gross basis and the GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority are classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.
(r) Employee entitlements
Provision is made for the Company's liability for employee benefits arising from services rendered by employees at balance date. Employee benefits expected to be settled within one year, together with entitlements arising from wages and salaries, annual leave and sick leave, which will be settled within one year, have been measured at the amounts expected to be paid when the liability is settled, plus related on-costs. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits. Contributions are made by the entity to employee superannuation funds and are charged as expenses when incurred.
(s) Segment information
Operating segments have been identified on the basis of internal reports about components of the Group that are regularly reviewed by the chief operating decision maker in order to allocate resources to the segments and to assess their performance. The chief operating decision maker has been identified as the board of directors of the Company.
(t) Intangible assets
Intangible assets acquired as part of a business combination, other than goodwill, are initially measured at their fair value at the date of the acquisition. Intangible assets acquired separately are initially recognised at cost. Indefinite life intangible assets are not amortised and are subsequently measured at cost less any impairment. Finite life intangible assets are subsequently measured at cost less amortisation and any impairment. The gains or losses recognised in profit or loss arising from the derecognition of intangible assets are measured as the difference between net disposal proceeds and the carrying amount of the intangible asset. The method and useful lives of finite life intangible assets are reviewed annually. Changes in the expected pattern of consumption or useful life are accounted for prospectively by changing the amortisation method or period.
(t) Intangible assets (continued)
Intellectual property
Significant costs associated with intellectual property are deferred and amortised on a straight-line basis over the period of their expected benefit, being their finite life of 5 years.
Software
Significant costs associated with software are deferred and amortised on a straight-line basis over the period of their expected benefit, being their finite life of 5 - 6 years.
Impairment of non-financial assets
Goodwill and other intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-use is the present value of the estimated future cash flows relating to the asset using a pretax discount rate specific to the asset or cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a cash-generating unit.
Digital Assets – Bitcoins
The Group measures digital assets such as Bitcoins at its fair value less costs to sell in accordance with the revaluation model. Digital assets are indefinite life intangible assets initially recognised at cost, and subsequently measured at fair value by reference to the quoted price in an active market. Increases in the carrying amount of digital assets on revaluation are credited to a revaluation surplus in equity. Decreases that offset previous increases are recognised against the revaluation surplus in equity; all other decreases are recognised in profit and loss. On disposal of digital assets, the cumulative revaluation surplus associated with those assets is transferred directly to retained earnings.
(u) Financial risk management policy
Details of the Group's financial risk management policy are set out in Note 24.
(v) Compound financial instruments
The Group evaluates the terms of any financial instrument to determine whether it contains both a liability and an equity component. The separate components of a financial instrument that create a financial liability and grant an option to the holder of the instrument to convert it into an equity instrument are recognised separately on the statement of financial position.
(w) Comparative figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.
(x) Research and development costs
Research costs are expensed as incurred. Development expenditures on an individual project are recognised as an intangible asset only when the Group can demonstrate:
- The technical feasibility of completing the intangible asset so that the asset will be available for use or sale;
- Its intention to complete and its ability and intention to use or sell the asset;
- How the asset will generate future economic benefits;
- The availability of resources to complete the asset; and
- The ability to measure reliably the expenditure during development.
(x) Research and development costs (continued)
Following initial recognition of the development expenditure as an asset, the asset is carried at cost less any accumulated amortisation and accumulated impairment losses. Amortisation of the asset begins when development is completed and the asset is available for use. It is amortised over the period of expected future benefit. Amortisation is recorded in the statement of profit and loss. During the period of development, the asset is tested for impairment annually.
(y) Critical accounting judgements and key sources of estimation uncertainty
In the application of Australian Accounting Standards management is required to make judgments, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstance, the results of which form the basis of making the judgments. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the year in which the estimate is revised if the revision affects only that year, or in the year of the revision and future years if the revision affects both current and future years.
Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported.
Share-based payments
The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined by using either the Trinomial, Binomial or Black- Scholes model taking into account the terms and conditions upon which the instruments were granted. There are several assumptions underlying the models. There are several assumptions underlying the models. The most significant is that of volatility, a measure of how much a stock can be expected to move in the near-term, is a constant over time. Assessing a suitable level of expected volatility is a significant part of the Rights valuation process and can have a material effect on the overall valuation. The accounting estimates and assumptions relating to equity-settled share-based payments would have no impact on the carrying amounts of assets and liabilities within the next annual reporting period but may impact profit or loss and equity.
Estimation of useful lives of assets
The Group determines the estimated useful lives and related depreciation and amortisation charges for its property, plant and equipment and finite life intangible assets. The useful lives could change significantly as a result of technical innovations or some other event. The depreciation and amortisation charge will increase where the useful lives are less than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off or written down.
Goodwill and other indefinite life intangible assets
The Group tests annually, or more frequently if events or changes in circumstances indicate impairment, whether goodwill and other indefinite life intangible assets have suffered any impairment, in accordance with the accounting policy stated in note 2(t). The recoverable amounts of cash-generating units have been determined based on value-in-use calculations. These calculations require the use of assumptions, including estimated pre-tax discount rates based on the current cost of capital and growth rates of the estimated future cash flows.
Income tax
The Group is subject to income taxes in the jurisdictions in which it operates. Significant judgement is required in determining the provision for income tax. There are many transactions and calculations undertaken during the ordinary course of business for which the ultimate tax determination is uncertain. The Group recognises liabilities for anticipated tax audit issues based on the Group's current understanding of the tax law. Where the final tax outcome of these matters is different from the carrying amounts, such differences will impact the current and deferred tax provisions in the period in which such determination is made.
3 REVENUES, OTHER INCOME AND EXPENSES
| Revenue and expenses from continuing operations | 2024 | 2023 | |
|---|---|---|---|
| $ | $ | ||
| (a) | Revenue | ||
| Revenue from operating activities | |||
| Sales – MTN | 1,013,252 | 871,313 | |
| Subscriptions | 797,694 | 890,502 | |
| Total revenue | 1,810,946 | 1,761,815 | |
| (b) | Other income | ||
| Gain on sale of digital currency | 819,481 | 172,517 | |
| Interest received | 639,374 | 413,018 | |
| Legal settlement | - | 99,053 | |
| Other income | 16,400 | - | |
| Total other income | 1,475,255 | 684,588 | |
| (c) | Consulting | ||
| Accounting and company secretarial | (203,903) | (153,650) | |
| Director fees | (178,500) | (307,000) | |
| General consultancy | (115,000) | (409,020) | |
| Total consulting expenses | (497,403) | (869,670) | |
| (d) | Professional expenses | ||
| Audit fees | (36,050) | (52,206) | |
| Legal fees | (64,455) | (70,592) | |
| Tax and other professional fees | (56,773) | (53,500) | |
| Total professional expenses | (157,278) | (176,298) | |
| 4INCOME TAX | |||
| 2024 | 2023 | ||
| $ | $ | ||
| (a) Income tax (benefit)/ expenses | |||
| Current tax | - | (458,567) | |
| Deferred tax | (431,687) | (512,426) | |
| Under / (over) provision in prior years | - | (19,462) | |
| Total Income tax (benefit)/ expenses reported in income statement | (431,687) | (990,455) | |
| A reconciliation of income tax expenses (benefit) applicable to accounting profit before income tax at the statutory income taxrate to income tax expense at the company's effective income tax rate for the years ended 30 June 2024 and 2023 is as follows: |
| (431,687) | (990,455) | |
|---|---|---|
| Deferred tax assets arising from expected credit losses not recognised | 200,000 | 146,499 |
| Under/ (over) provision in prior years | (123,874) | (19,462) |
| Share Based Payments | - | 6,526 |
| Non-deductible expenses | (14,293) | (13,858) |
| Add: | ||
| At the statutory income tax rate 25% (2023: 25%) | (493,520) | (1,110,160) |
| Accounting profit (loss) before income tax | (1,974,081) | (4,440,643) |
4 INCOME TAX (CONTINUED)
| 2024 | 2023 | ||
|---|---|---|---|
| $ | $ | ||
| (a) | Income tax payable | ||
| Provision for income tax | 965,793 | 965,793 | |
| (b) Recognised Deferred tax assets/ liabilities | |||
| Deferred tax assets | |||
| Equity capital raising cost | 4,742 | 9,483 | |
| Other deferred tax assets | 1,680,000 | 1,268,840 | |
| 1,684,742 | 1,278,323 | ||
| Deferred tax liabilities | |||
| Other deferred tax liabilities | (14,759) | (37,630) | |
| Fixed assets | (901) | (3,298) | |
| (15,660) | (40,928) | ||
| Net deferred tax assets | 1,669,082 | 1,237,395 | |
| (c) Unrecognised deferred tax assets/ (liabilities) | |||
| Deferred tax assets/ (liabilities) have not been recognised in respect of the following items | |||
| Impaired Intellectual Property | 1,814,067 | 1,613,061 | |
| Tax losses | - | 470,410 | |
| Unrecognised deferred tax assets | 1,814,067 | 2,083,471 |
The tax losses do not expire under current tax legislation. Deferred tax assets have been recognised because it is probable that future taxable amounts will be available to utilise the temporary differences and unused tax losses.
5 EARNINGS PER SHARE
| 2024 | 2023 | |
|---|---|---|
| cents | cents | |
| Basic profit/(loss) per share | (0.13) | (0.31) |
| Diluted profit/(loss) per share | (0.13) | (0.31) |
The following reflects the loss and weighted average number of shares used in the basic and diluted loss per share computations:
| 2024 | 2023 | |
|---|---|---|
| $ | $ | |
| (a) Reconciliation of earnings used in calculating earnings per share | ||
| Income/(Loss) attributable to ordinary equity holders of the Company fromcontinuing operations used in the calculation of basic earnings per share and diluted | ||
| earnings per share | (1,542,394) | (3,450,188) |
| 2024 | 2023 | |
| Shares | Shares | |
| (b) Weighted average number of shares used in the denominator | ||
| Weighted average number of ordinary shares used as the denominator in calculating | ||
| basic earnings per share | 1,146,270,390 | 1,130,624,049 |
| Adjusted weighted average number of ordinary shares used in calculating diluted | ||
| earnings per share | 1,146,270,390 | 1,130,624,049 |
6 CASH AND CASH EQUIVALENTS
| 2024 | 2023 | |
|---|---|---|
| $ | $ | |
| Cash and cash equivalents | ||
| Cash at bank and in hand | 14,345,612 | 6,403,743 |
| 14,345,612 | 6,403,743 |
Cash at bank and in hand earns interest at floating rates based on daily bank rates. The fair value of cash and cash equivalents as reported met the AASB definition is $14,345,612 (2023: $6,403,743). An additional amount of $9,000,000 are invested in long term deposits with Australian banks in 2023 (Note 10).
| 2024 | 2023 | |
|---|---|---|
| $ | $ | |
| Reconciliation of cash | ||
| Cash | 14,345,612 | 6,403,743 |
| (a) Reconciliation of loss from ordinary activities after income tax to net cash usedin operating activities | ||
| Operating loss after income tax | (1,542,394) | (3,450,188) |
| Adjustments for: | ||
| Depreciation and amortisation | 10,567 | 8,590 |
| Share based payments | 273,264 | 385,250 |
| Gain on disposal of digital assets | - | (172,518) |
| Allowance for credit losses | 879,915 | 2,660,544 |
| Foreign exchange | (43,701) | (44,997) |
| Changes in assets and liabilities: | ||
| (Increase)/decrease in trade and other receivables | (147,771) | (440,893) |
| (Increase)/decrease in other assets | 102,520 | (65,123) |
| (Decrease)/increase in trade and other payables | (160,902) | (282,275) |
| (Decrease)/increase in other liabilities | 9,863 | 319,241 |
| (Increase)/decrease in deferred tax assets | (431,687) | (512,427) |
| Increase/(decrease) in provision for income tax | - | (1,377,568) |
| Net cash from/(used in) operating activities | (1,050,326) | (2,972,364) |
| 7TRADE AND OTHER RECEIVABLES | ||
| 2024 | 2023 | |
| $ | $ | |
| Trade and other receivables | ||
| Trade receivables (i) | 874,305 | 750,234 |
| Less: Allowance for expected credit losses | (613,259) | (244,544) |
| Other receivables (ii) | - | 2,416,000 |
| Less: Allowance for expected credit losses | - | (2,416,000) |
| Accrued receivables | 114,413 | 216,933 |
| 375,459 | 722,623 |
(i) Expected credit losses have been evaluated using the probability of default method. It has been determined as $613,259 as of 30 June 2024 (2023: $244,544).
(ii) The deferred consideration of $2,416,000 from the sale of MIGGSTER business has been fully written off.
8 ACQUISITION OF VAS BUSINESS OF MOBIMEDIA
On 12 December 2022, the Group completed the acquisition of 100% of the VAS business of Mobimedia. Below is an outline of the accounting recognition for the acquisition.
| Consideration transferred | $ |
|---|---|
| Cash | 487,500 |
| Contingent Consideration: Deferred Consideration Shares i | 162,500 |
| Contingent Consideration: Additional Deferred Shares ii | 150,000 |
| Total Consideration | 800,000 |
iThe Deferred Consideration Shares will be issued to the vendor subject to the VAS business being acquired achieving more than $660,000 in audited revenue (excluding any one-off extraordinary revenue and investment income items), from its existing partnership agreements within 12 months from the Settlement Date of the Purchase Agreement.
ii Additional Deferred Shares of $150,000 subject to the VAS business achieving a target of more than $1,150,000 in audited revenue, (excluding any one-off extraordinary revenue and investment income items), from its existing partnership agreements within 12 months from Settlement Date of the Purchase Agreement.
Assets acquired and liabilities assumed at the date of acquisition
With the acquisition, new Streamplay assets include:
- mJams Music (Music & Video Streaming App), the largest indigenous specific music streaming app in the South Pacific holding content from over 1000+ Pacific Islands based musicians
- All product content including, Mobile games content, SMS games and On-Deck Portals
- Telco graded billing engine capable of integrations across multiple MNO's billing infrastructure
- Telco graded Customer care CMS, giving telco and VAS partners capabilities to manage user subscriptions, and multiple services.
- Service Delivery Platform (SDP), a platform allowing unique delivery of content towards specific devices
- All contracts and arrangements material to the operation of the VAS business, including the partnership agreements with respective MNOs
- Signed music rights agreements with all 1000+ artists across all jurisdictions
- All intellectual property, software systems, website and related content, social media accounts, contact numbers, contact email addresses, passwords, codes, data and any other assets associated with the operation of the VAS business
Goodwill arising on acquisition
Goodwill arose in the acquisition of the business of Mobimedia because the acquisition included assets that could not be separately recognised from goodwill because they are not capable of being valued, separated from the Group and sold, transferred, licensed, rented or exchanged, either individually or together with any related contracts.
The initial accounting for the acquisition of Mobimedia has only been provisionally determined at the end of the financial year. At the date of finalisation of this annual financial report, the necessary market valuations and other calculations had not been finalised and the fair value of the plant and equipment, associated deferred tax liabilities and goodwill noted above have therefore only been provisionally determined based on the directors' best estimate of the likely fair value of the plant and equipment.
Impairment
During the year, the Group undertook an impairment review of its goodwill. Consequently, the carrying value of goodwill exceeded its recoverable amount, leading to an impairment charge of $800,000. The Deferred consideration has lapsed as the conditions were not met.
9 GOODWILL
| 30 Jun 24 | 30 Jun 23 |
|---|---|
| $ | $ |
| - | |
| - | 800,000 |
| 800,000 | 800,000 |
| 30 Jun 24 | 30 Jun 23 |
| $ | $ |
| - | - |
| (800,000) | - |
| (800,000) | - |
| - | |
| - | 800,000 |
| 800,000800,000 |
Term Deposit - 9,000,000
In 2023, investment are term deposits held with various financial institutions in Australia.
| Term Deposit | Amount $ | Interest rate | Duration |
|---|---|---|---|
| #1 | 4,000,000 | 4.72% | 6 months |
| #2 | 2,000,000 | 4.72% | 9 months |
| #3 | 3,000,000 | 4.51% | 9 months |
| Total | 9,000,000 |
11 PROPERTY, PLANT AND EQUIPMENT
| 2024 | 2023 | |
|---|---|---|
| $ | $ | |
| Computer equipment at cost | 30,071 | 22,266 |
| Less accumulated depreciation | (20,612) | (11,509) |
| 9,459 | 10,757 | |
| Office equipment at cost | 3,074 | 3,074 |
| Less accumulated depreciation | (1,126) | (638) |
| 1,948 | 2,436 | |
| Total property plant and equipment | 11,407 | 13,193 |
12 INTANGIBLE ASSETS
| 2024 | 2023 | |
|---|---|---|
| $ | $ | |
| Acquired intangible assets | 4,881 | 4,881 |
| Less accumulated amortisation | (2,928) | (1,952) |
| Total intangible assets | 1,953 | 2,929 |
13 TRADE AND OTHER PAYABLES
| 2024 | 2023 | |
|---|---|---|
| $ | $ | |
| Trade and other payables | ||
| Trade payables | 164,979 | 315,720 |
| Other payables | 16,671 | 26,238 |
| Accrued expenses | 67,906 | 68,500 |
| 249,556 | 410,458 |
(i) Trade payables and accruals are non-interest bearing and are normally settled on repayment terms between 7 and 30 days.
14 ISSUED CAPITAL
| 2024 | 2023 | |
|---|---|---|
| $ | $ | |
| Ordinary shares | ||
| Ordinary shares fully paid | 74,169,958 | 74,082,458 |
| Less: Capital raising costs | (1,680,942) | (1,680,942) |
| 72,489,016 | 72,401,516 |
Fully paid ordinary shares carry one vote per share and carry the right to dividends. Issued capital has no par value.
| 2024FULLY PAID ORDINARY SHARES | Numberof shares | $ |
|---|---|---|
| Balance at 1 July 2023 | 1,138,073,669 | 72,401,516 |
| Issue of shares in return for services | 12,500,000 | 87,500 |
| Balance at 30 June 2024 | 1,150,573,669 | 72,489,016 |
| 2023FULLY PAID ORDINARY SHARES | Numberof shares | $ |
| Balance at 1 July 2023 | 1,121,184,780 | 72,209,737 |
| Issue of shares to KMP | 9,259,259 | 101,852 |
| Issue of shares to KMP | 3,000,000 | 39,002 |
| Issue of shares in return for services | 4,629,630 | 50,925 |
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in proportion to the number of and amounts paid on the shares held. On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one (1) vote, and upon a poll each share is entitled to one (1) vote, in proportion to the number of and amounts paid on the shares held.
15 RESERVES AND ACCUMULATED LOSSES
| (a) Reserves | 2024 | 2023 |
|---|---|---|
| $ | $ | |
| Options & share based payments reserves | 264,713 | 1,234,699 |
| Revaluation reserve | (73,761) | (30,060) |
| Total Reserves | 190,952 | 1,204,639 |
| Movements in reserve | 2024 | 2023 |
| $ | $ | |
| Opening balance | 1,204,639 | 864,386 |
| Expiry of performance rights (ii) | (1,155,750) | - |
| Recognition of share-based payment (i) | 185,764 | 385,250 |
| Revaluation Reserve | (43,701) | (44,997) |
| Total Reserves | 190,952 | 1,204,639 |
(i) During the financial year, the Company recognised the fair value of performance rights:
| Tranche 1 | Tranche 2 | Tranche 3 | Total | ||||
|---|---|---|---|---|---|---|---|
| No. of | No. of | No. of | No. of | ||||
| Performance | Performance | Performance | Performance | ||||
| rights | Fair Value | rights | Fair Value | rights | Fair Value | rights | Fair Value |
| 7,500,000 | 64,010 | 7,500,000 | 61,840 | 7,500,000 | 59,914 | 22,500,000 | 185,764 |
Each Performance Right converts into 1 fully paid ordinary share on vesting. The principal terms of each tranche of the Performance Rights are summarised:
Tranche 1 performance rights :
7,500,000 performance rights each converting into shares on a one for one basis will vest on the date that the Company's 14 day volume weighted average share price is equal to or exceeds a market capitalisation of AUD$135,000,000 subject to the relevant person being a director at this time.
Tranche 2 performance rights:
7,500,000 performance rights each converting into shares on a one for one basis will vest on the date that the Company's 14 day volume weighted average share price is equal to or exceeds a market capitalisation of AUD$150,000,000 subject to the relevant person being a director at this time.
Tranche 3 performance rights:
7,500,000 performance rights each converting into shares on a one for one basis will vest on the date that the Company's 14 day volume weighted average share price is equal to or exceeds a market capitalisation of AUD$165,000,000 subject to the relevant person being a director at this time.
All Tranches of Performance Rights have an expiry date of 3 years from the date of issue.
The value of the Tranche 1, 2 and 3 Performance Rights at grant date was estimated using a Trinomial Model which takes into account the exercise price and expected life of the instrument, the current share price and its expected volatility, expected dividends and the risk-free interest rate for the expected life of the instrument. The value ascribed to each Tranche 1, 2 and 3 Performance Right were derived using the following inputs:
| Input | Tranche 1 | Tranche 2 | Tranche 3 |
|---|---|---|---|
| Grant date 14 day VWAP | $0.093 | $0.093 | $0.093 |
| Barrier price | $0.168 | $0.186 | $0.205 |
| Expected volatility | 113% | 113% | 113% |
| Performance rights term | 3 years | 3 years | 3 years |
| Risk-free interest rate | 0.11% | 0.11% | 0.11% |
| Dividend yield | n/a | n/a | n/a |
| Grant Date Fair Value per right | $0.053 | $0.051 | $0.050 |
(ii) As at the date of this report, Tranches 1, 2 and 3 Performance Rights have not achieved the relevant milestones to convert to fully paid ordinary shares and has expired.
15 RESERVES AND ACCUMULATED LOSSES (CONTINUED)
| (b) Accumulated losses | 2024 | 2023 |
|---|---|---|
| $ | $ | |
| Movement in accumulated losses were as follows: | ||
| Balance 1 July | (57,241,765) | (53,791,577) |
| Net profit/ (loss) for the year | (1,542,394) | (3,450,188) |
| Expiry of performance rights | 1,155,750 | - |
| Balance 30 June | (57,628,409) | (57,241,765) |
16 INTERESTS IN CONTROLLED ENTITY
The consolidated financial statements include the financial statements of Streamplay Studio Limited and its controlled entity listed in the following table:
| Country ofIncorporation | Percentage of equity interestheld by the Group | Investment | |||
|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | ||
| % | % | $ | $ | ||
| Streamplay Solutions Pty Ltd | Australia | 100 | 100 | 5,498,916 | 5,498,916 |
| Streamplay Pacific Pty Ltd (i) | Australia | 100 | 100 | 100 | 100 |
| Streamplay Pacific PNG Limited (ii) | PNG | 100 | 100 | 41 | 41 |
| 5,499,057 | 5,499,057 |
Streamplay Studio Limited is the ultimate Australian parent entity and ultimate parent of the Group.
- (i) Streamplay Pacific Pty Ltd was incorporated during the financial year as an operating entity for the acquired VAS business
- (ii) Streamplay PNG Pacific Limited was incorporated during the financial year as a 100% owned entity of Streamplay Pacific Pty Ltd.
17 EXPENDITURE COMMITMENTS
(a) Lease expenditure commitments
The Company's office lease is contracted on a one-year fixed term with option to renew. No significant make-good or other obligations.
(b) Bank guarantee
There are no bank guarantees of the Group at 30 June 2024.
(c) Capital Commitments
There are no capital commitments of the Group at 30 June 2024.
18 CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Contingent Liabilities
The Group did not have any contingent liabilities as at Balance Date.
19 SUBSEQUENT EVENTS
No matter or circumstance has arisen since 30 June 2024 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.
20 REMUNERATION OF AUDITORS
During the year Hall Chadwick WA was appointed as auditor of Streamplay Studio Limited replacing Criterion Audit.
| 2024 | 2023 | |
|---|---|---|
| $ | $ | |
| Amounts received or due and receivable by auditors for: | ||
| An audit or review of the financial report of the entity or controlled entities | 43,050 | 52,206 |
| 43,050 | 52,206 |
21 RELATED PARTY DISCLOSURES
The following table provides the total amount of transactions which have been entered into with related parties for the relevant financial year:
| 2024 | 2023 | |
|---|---|---|
| $ | $ | |
| Technical consultancy services fees paid to Indomain Enterprises Pty Ltd– an entity associated with Mr B Mondello | 15,000 | 60,000 |
| R&D consultancy services fees paid to Illustrial Capital Pty Ltd– an entity associated with Mr B Mondello | 82,500 | - |
The above transactions were entered on a commercial arm-length basis.
22 KEY MANAGEMENT PERSONNEL ("KMP") COMPENSATION
(a) Details of key management personnel
| Mr Bert Mondello | Executive Chairman |
|---|---|
| Mr Philip Re | Non-Executive Director |
| Mr Firdhose Coovadia | Non-Executive Director |
(b) Compensation of key management personnel
The aggregate compensation made to directors and other members of key management personnel of the Group is set out below:
| 2024 | 2023 | |
|---|---|---|
| $ | $ | |
| Short-term employee benefits | 178,500 | 307,000 |
| Share-based payments | - | 385,250 |
| 178,500 | 692,250 |
(c) Other transactions with key management personnel
Refer to Note 22 regarding other transactions with key management personnel to the Company.
23 SEGMENT INFORMATION
An operating segment is a component of an entity that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the same entity), whose operating results are regularly reviewed by the entity's chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance and for which discrete financial information is available. This includes start-up operations which are yet to earn revenues. Management will also consider other factors in determining operating segments such as the existence of a line manager and the level of segment information presented to the board of directors. During the year the Company only operated in one segment and that was operating of the technology platform.
23 SEGMENT INFORMATION (continued)
Geographical information
| Geographical non-current | |||||
|---|---|---|---|---|---|
| Sales to external customers | assets | ||||
| 2024 | 2023 | 2023 | |||
| $ | $ | 2024$ | $ | ||
| Pacific | 797,694 | 890,502 | 801,436 | 800,000 | |
| South Africa | 1,013,252 | 871,313 | 9,971 | 13,193 | |
| 1,810,946 | 1,761,815 | 811,407 | 813,193 |
24 FINANCIAL INSTRUMENTS
(a) Financial risk management policy
The Group's management of financial risk is aimed at ensuring net cash flows are sufficient to:
- meet all financial commitments as and when they fall due, and
- maintain the capacity to fund its forecast project development and exploration strategies.
The Group continually monitors and tests its forecast financial position against these criteria. The Group's principal financial instruments comprise cash and short-term deposits. The main purpose of these financial instruments is to raise finance for the Group operations. The Group has various other financial assets and liabilities such as trade receivables and trade payables, which arise directly from its operations. It is, and has been throughout the period under review, the Group's policy that no trading in financial instruments shall be undertaken.
The main risks arising from the Group's financial instruments presently are interest rate risk, foreign currency risk, credit risk, security risk, digital asset price risk and liquidity risk.
The Group uses different methods to measure and manage different types of risks to which it is exposed. These include monitoring levels of exposure to interest rate and foreign exchange risk and assessments of market forecasts for interest rate, foreign exchange and commodity prices. Ageing analyses and monitoring of specific credit allowances are undertaken to manage credit risk. Liquidity risk is monitored through the development of future rolling cash flow forecasts.
(b) Interest rate risk
The following table sets out the carrying amount of the financial instruments exposed to interest rate risk:
| 2024$ | 2023$ | |
|---|---|---|
| Financial assets | ||
| Interest bearing | ||
| Cash at bank | 12,745,156 | 5,682,418 |
| Investment – term deposits | - | 9,000,000 |
| Weighted average interest rate | 5.01% | 4.25% |
| Non-interest bearing | ||
| Cash at bank | 1,600,456 | 721,114 |
| Trade receivables | 375,459 | 722,623 |
| 14,721,071 | 16,126,155 | |
| Financial liabilities | ||
| Non-interest bearing | ||
| Trade and other payables | 249,556 | 410,458 |
24 FINANCIAL INSTRUMENTS (CONTINUED)
(b) Interest rate risk (continued)
The following table summarises the sensitivity of financial assets held at balance date to interest rate risk, following a movement of 100 basis points in interest rates at the reporting date would have increased (decreased) equity and profit or loss by the amounts shown below.
| Consolidated Post-tax gain (loss)/ equity increase (decrease) | 2024$ | 2023$ |
|---|---|---|
| +1% (100 basis points) | 127,452 | 146,824 |
(c) Fair values
Set out below is a comparison by category of carrying amounts and fair values of all of the Group's financial instruments recognised in the financial statements.
| Carrying Amount | Fair Value | ||||
|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | ||
| $ | $ | $ | $ | ||
| Financial assets | |||||
| Cash | 14,345,612 | 6,403,743 | 14,345,612 | 6,403,743 | |
| Investment – term deposit | - | 9,000,000 | - | 9,000,000 | |
| Trade and other receivables – current | 375,459 | 722,623 | 375,459 | 722,623 | |
| Financial liabilities | |||||
| Trade and other payables | 249,556 | 410,458 | 249,556 | 410,458 |
Cash, cash equivalents and security deposits: The carrying amount approximates fair value.
Trade receivables and trade creditors: The carrying amount approximates fair value.
| Fair value hierarchy as at 30 June 2024 | |||||
|---|---|---|---|---|---|
| Level 1 | Level 2 | Level 3 | Total | ||
| $ | $ | $ | $ | ||
| Financial assets | |||||
| Cash | 14,345,612 | - | - | 14,345,612 | |
| Investment – term deposit | - | - | - | - | |
| Trade and other receivables – current | - | 375,459 | - | 375,459 | |
| Total | 14,345,612 | 375,459 | - | 14,721,071 | |
| Financial liabilities | |||||
| Trade and other payables | - | 249,556 | - | 249,556 | |
| Total | - | 249,556 | - | 249,556 |
(d) Credit risk
Credit risk arises from the financial assets of the Group, which comprise cash and cash equivalents, and trade and other receivables. The Group's exposure to credit risk arises from potential default of the counter party, with a maximum exposure equal to the carrying amount of these instruments.
The Group does not hold any credit derivatives to offset its credit exposure.
In addition, receivable balances are monitored on an ongoing basis with the result that the Group's exposure to bad debts is not significant.
24 FINANCIAL INSTRUMENTS (CONTINUED)
(d) Credit risk (continued)
The maximum exposure to credit risk at the reporting date is the carrying amount of the following financial assets:
| $ | |
|---|---|
| Cash and cash equivalents | 14,345,612 |
| Trade receivables | 375,459 |
| Total | 14,721,071 |
(e) Liquidity risk
The Group's liquidity position is managed to ensure sufficient funds are available to meet financial commitments in a timely and cost-effective manner.
The Company continually reviews its liquidity position including cash flow forecast to determine the forecast liquidity position and maintain appropriate liquidity levels.
In addition to the commitment disclosure in Note 17, the table below reflects the contractual maturity of financial instruments as at 30 June. Cash flows for financial instruments are presented on an undiscounted basis.
| Aging analysis between | ||||||
|---|---|---|---|---|---|---|
| 2024 | Total | <30 days | 30-60 days | >60 days | ||
| $ | $ | $ | $ | |||
| Cash and cash equivalents | (14,345,612) | (14,345,612) | - | - | ||
| Trade and other receivables | (375,459) | (235,646) | (51,228) | (88,585) | ||
| Trade and other payables | 249,556 | 120,678 | 45,385 | 83,493 | ||
| Total | (14,471,515) | (14,460,580) | (5,843) | (5,092) |
| Aging analysis between | ||||||
|---|---|---|---|---|---|---|
| 2023 | Total | <30 days | >60 days | |||
| $ | $ | 30-60 days$ | $ | |||
| Cash and cash equivalents | (6,403,743) | (6,403,743) | - | - | ||
| Investment – term deposit | (9,000,000) | - | - | (9,000,000) | ||
| Trade and other receivables | (2,779,167) | (335,956) | (109,737) | (2,333,474) | ||
| Trade and other payables | 410,457 | 385,237 | 16,096 | 9,124 | ||
| Total | (17,772,453) | (6,354,462) | (93,641) | (11,324,350) |
(f) Capital management policy
The Board's policy is to preserve its capital base as much as possible so as to maintain investor, creditor and market confidence and to sustain future development of the business.
There were no changes in the Group's approach to capital management during the year, other than that Group has been able to rely upon equity to finance its capital management, rather than short term debt finance.
Neither the Company nor its controlled entity are subject to externally imposed capital requirements.
24 FINANCIAL INSTRUMENTS (CONTINUED)
(g) Foreign Exchange Risk
The Group undertakes certain transactions denominated in foreign currency and is exposed to foreign currency risk through foreign exchange rate fluctuations.
The Group had the following exposure to foreign currency:
| 2024 | ZAR | PGK | SBD | TOP | AED | USD |
|---|---|---|---|---|---|---|
| A$ | A$ | A$ | A$ | A$ | A$ | |
| Cash and cash equivalents | - | 57,174 | - | - | - | - |
| Trade and other receivables | 480,432 | 322,913 | 939 | 11,092 | 1,175 | 12,478 |
| 480,432 | 380,087 | 939 | 11,092 | 1,175 | 12,478 | |
| Trade and other payables | 132,368 | 6,846 | - | - | - | 1,664 |
| Total | 348,064 | 373,241 | 939 | 11,092 | 1,175 | 10,813 |
| 2023 | ZAR | PGK | SBD | TOP | FJD | USD |
| A$ | A$ | A$ | A$ | A$ | ||
| Cash and cash equivalents | - | - | - | - | - | - |
| Trade and other receivables | 484,662 | 148,875 | 37,641 | 8,889 | - | 24,836 |
| 484,662 | 148,875 | 37,641 | 8,889 | - | 24,836 | |
| Trade and other payables | 148,149 | - | - | - | 12,134 | 16,574 |
| Total | 336,514 | 148,875 | 37,641 | 8,889 | (12,134) | 24,836 |
The following sensitivity is based on a 10% movement of foreign currencies against the AUD and the effect on the net profit or loss and equity of the Group for the period to 30 June 2024, with all other variables held constant:
| 2024 | 2023 | |||
|---|---|---|---|---|
| ProfitEquity | Profit | Equity | ||
| $ | $ | $ | $ | |
| Foreign currencies increasing 10% against AUD | 74,532 | 74,532 | 52,436 | 52,436 |
| Foreign currencies decreasing 10% against AUD | (74,532) | (74,532) | (52,436) | (52,436) |
(h) Digital asset price risk
The Group has adopted a policy to convert any digital assets as soon as possible on receipt, minimising any exposure to this risk.
25 PARENT ENTITY INFORMATION
The accounting policies of the parent entity, which have been applied in determining the financial information shown below, are the same as those applied in the consolidated financial statements. Refer to Note 2 for a summary of the significant accounting policies relating to the Group.
| 2024 | 2023 | |
|---|---|---|
| $ | $ | |
| (a) Financial Position | ||
| Assets | ||
| Current assets | 18,195,180 | 14,775,552 |
| Non-Current assets | 1,686,695 | 802,929 |
| Total assets | 19,881,875 | 15,578,481 |
| Liabilities | ||
| Current liabilities | 1,184,091 | 1,306,026 |
| Non-current liabilities | 312,500 | 312,500 |
| Total liabilities | 1,496,591 | 1,618,526 |
| Equity | ||
| Contributed equity | 72,489,015 | 72,401,515 |
| Accumulated losses | (54,368,444) | (59,676,260) |
| Option issue reserve | 264,713 | 1,234,700 |
| Total equity | 18,385,284 | 13,959,955 |
| (b) Financial Performance | ||
| Loss for the year | 5,307,816 | 414,141 |
| Other comprehensive income | - | - |
| Total comprehensive income | 5,307,816 | 414,141 |
(c) Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
At the Balance Date there are no guarantees entered into by the Parent Entity in relation to the debts of its subsidiaries (2023: Nil).
(d) Contingent liabilities of the parent entity
The Parent Entity did not have any contingent liabilities as at Balance Date.
(e) Commitments for capital expenditure entered into by the parent entity
The Parent Entity did not have any commitments for capital expenditure as at Balance Date.
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
Set out below is relevant information relating to entities that are consolidated in the consolidated financial statements at the end of the financial year as required by the Corporations Act 2001 (s.295(3A)(a)).
| Name of Entity | Type of Entity | Trustee, ,orparticipant inJoint Venture | % of sharecapital held | Country ofincorporation | AustralianResident orForeignresident(forTaxpurposes) | Foreign taxjurisdictionof foreignresidents. |
|---|---|---|---|---|---|---|
| StreamplayStudio Limited | Body Corporate | n/a | n/a | Australia | Australian | n/a |
| StreamplaySolutions Pty Ltd | Body Corporate | n/a | 100 | Australia | Australian | n/a |
| StreamplayPacific Pty Ltd | Body Corporate | n/a | 100 | Australia | Australian | n/a |
| StreamplayPacific PNGLimited | Body Corporate | n/a | 100 | PNG | Foreign | PNG |
DIRECTORS' DECLARATION
The directors of Streamplay Studio Limited declare that:
- (a) in the directors' opinion, the financial statements and notes on pages 15 to 44, and the remuneration disclosures that are contained in the Directors' report, set out on pages 4 to 13, are in accordance with the Corporations Act 2001, including:
- i. giving a true and fair view of the Consolidated Entity's financial position as at 30 June 2024 and of its performance, for the year ended on that date; and
- ii. complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and Corporations Regulations 2001.
- (b) in the directors' opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.
- (c) in the directors' opinion, the attached consolidated entity disclosure statement is true and correct.
The directors have been given the declarations required by Section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of the directors pursuant to Section 295(5) of the Corporations Act 2001.
Dated 30th day of September 2024.
BERT MONDELLO Chairman
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF STREAMPLAY STUDIOS LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Streamplay Studios Limited ("the Company") and its subsidiaries ("the Consolidated Entity"), which comprises the consolidated statement of financial position as at 30 June 2024, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including material accounting policy information, the consolidated entity disclosure statement and the director's declaration.
In our opinion:
- a. the accompanying financial report of the Consolidated Entity is in accordance with the Corporations Act 2001, including:
- (i) giving a true and fair view of the Consolidated Entity's financial position as at 30 June 2024 and of its financial performance for the year then ended; and
- (ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.
- b. the financial report also complies with International Financial Reporting Standards as disclosed in Note 2(a).
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Consolidated Entity in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
47
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
| Key Audit Matter | How our audit addressed the Key Audit Matter |
|---|---|
| Revenue Recognition (note 3) | Our procedures included, amongst others: |
| During the year the Group generated revenues fromoperating activities of $1,810,946. | •Documenting the processes and assessing theinternal controls relating to revenue processing |
| We focused on this area as recognition of revenue | and recognition; |
| under AASB 15 Revenue from Contracts withCustomers('AASB15')requiressignificant | •Reviewing the revenue recognition policy forcompliance with AASB 15; |
| judgementbymanagementinidentifyingperformanceobligations,allocationofthetransaction price and satisfaction of performanceobligations over time or at a point in time. | •Reviewing a sample of revenue to supportingcontracts to ensure revenue was recognized inline with the revenue recognition policy; |
| We consider this to be a key audit matter due to thejudgement and estimates involved in determiningwhen the performance obligations are met, and | •Tracing the revenue received to the bankstatements during the year and subsequent toyear end; |
| revenue is recognised. | •Assessingtheappropriatenessofthedisclosures included in the relevant notes to thefinancial report. |
Other Information
The directors are responsible for the other information. The other information comprises the information included in the Consolidated Entity's annual report for the year ended 30 June 2024, but does not include the financial report and our auditor's report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the 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 financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error, and the consolidated entity disclosure statement that is true and correct and is free of misstatement, whether due to fraud or error. In Note 2(a), the directors also state in accordance with Australian Accounting Standard AASB 101 Presentation of Financial Statements, that the financial report complies with International Financial Reporting Standards.
In preparing the financial report, the directors are responsible for assessing the Consolidated Entity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Consolidated Entity or to cease operations, or has no realistic alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Consolidated Entity's internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
- Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Consolidated Entity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Consolidated Entity to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.
- Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Consolidated Entity to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the Consolidated Entity audit. We remain solely responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the financial report of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on the Remuneration Report
We have audited the Remuneration Report included in the directors' report for the year ended 30 June 2024. The directors of the Company are responsible for the preparation and presentation of the remuneration report in accordance with s 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the remuneration report, based on our audit conducted in accordance with Australian Auditing Standards.
Auditor's Opinion
In our opinion, the Remuneration Report of Streamplay Studios Limited, for the year ended 30 June 2024, complies with section 300A of the Corporations Act 2001.
HALL CHADWICK WA AUDIT PTY LTD CHRIS NICOLOFF FCA
Director
Dated this 30th day of September 2024 Perth, Western Australia
ADDITIONAL ASX INFORMATION
NUMBER OF HOLDINGS OF EQUITY SECURITIES AS AT 31 AUGUST 2024
The fully paid issued capital of the Company consisted of 1,150,573,669 ordinary fully paid shares held by 1,724 shareholders. Each share entitles the holder to one vote.
DISTRIBUTION OF HOLDERS OF EQUITY SECURITIES AS AT 31 AUGUST 2024
| Spread of holdings | Number of holders | Number of shares | % Held |
|---|---|---|---|
| 1 - 1,000 | 39 | 7,832 | 0.00% |
| 1,001 - 5,000 | 28 | 97,750 | 0.01% |
| 5,001 - 10,000 | 43 | 353,275 | 0.03% |
| 10,001 - 100,000 | 761 | 48,427,783 | 4.21% |
| 100,001 - 9,999,999,999 | 853 | 1,101,687,029 | 95.75% |
| Totals | 1,724 | 1,150,573,669 | 100.00% |
| Unmarketable parcels | Minimum parcel size | Holders | Units |
| Minimum $500 parcel at $0.006 per unit | 83,333 | 664 | 28,881,833 |
SUBSTANTIAL SHAREHOLDERS AS AT 31 AUGUST 2024
The names of substantial shareholders the Company is aware of from the register, or who have notified the Company in accordance with Section 671B of the Corporations Act are:
| Substantial shareholder | Number of shares | % Held |
|---|---|---|
| VBS Exchange Pty Ltd | 66,000,000 | 5.78% |
UNQUOTED EQUITY SECURITIES
The following unlisted options were on issue as at 31 August 2024:
- EM1OA 6,000,000 unlisted options exercisable at $0.07 each on or before 27 April 2025 held by 1 option holder Evolution Capital Advisors Pty Ltd which represents 100% of issued EM1OA options;
- EM1OB 6,000,000 unlisted options exercisable at $0.09 each on or before 27 April 2025 held by 1 option holder Evolution Capital Advisors Pty Ltd which represents 100% of issued EM1OB options; and
- EM1OC 6,000,000 unlisted options exercisable at $0.12 each on or before 27 April 2025 held by 1 option holder Evolution Capital Advisors Pty Ltd which represents 100% of issued EM1OC options.
Options do not carry a right to vote.
ON-MARKET BUY BACK
As at 31 August 2024 there is no current on-market buy back.
RESTRICTED SECURITIES
As at 31 August 2024 the Company has no restricted securities on issue.
ADDITIONAL ASX INFORMATION
TOP 20 HOLDERS OF ORDINARY FULLY PAID SHARES AS AT 31 AUGUST 2024
| Rank | Shareholder | Number of shares | % Held |
|---|---|---|---|
| 1 | VBS EXCHANGE PTY LTD | 66,000,000 | 5.78% |
| 2 | FINCLEAR SERVICES PTY LTD | 39,574,756 | 3.47% |
| 3 | MR RYAN KENNETH YEARSLEY | 37,261,334 | 3.27% |
| 4 | MR GREGORY STEVENS | 35,705,530 | 3.13% |
| 5 | MR THOMAS LUKE ANUSIC | 32,261,000 | 2.83% |
| 6 | MR WENG LIONG AU YONG | 30,028,032 | 2.63% |
| 7 | MR PETER GORDON CAMERON & MRS SALLY ANN CAMERON | 30,000,000 | 2.63% |
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| 8 | MR JONATHAN HART | 26,975,000 | 2.36% |
| 9 | INDOMAIN ENTERPRISES PTY LTD | 21,787,501 | 1.91% |
| 10 | MRS JULIE CAROL FIDLER | 21,646,721 | 1.90% |
| 11 | MR DAVID LEE | 20,000,000 | 1.75% |
| 12 | SITUATE PTY LTD | 19,867,393 | 1.74% |
| 13 | YASELLERAPH P/L | 17,350,000 | 1.52% |
| 14 | MS DAYLE REYNOLDS | 16,477,802 | 1.44% |
| 15 | EVOLUTION CAPITAL ADVISORS PTY LTD | 16,000,000 | 1.40% |
| 16 | TAVEROAM PTY LIMITED | 15,132,607 | 1.33% |
| 17 | EVOLUTION CAPITAL PTY LTD | 15,000,000 | 1.31% |
| 18 | LTL CAPITAL PTY LTD | 14,000,000 | 1.23% |
| 19 | LIGURIAN HOLDINGS PTY LTD | 13,301,875 | 1.17% |
| 20 | KIORAKU PTY LTD | 10,450,001 | 0.92% |
| Total | 498,819,552 | 43.72% |