Annual report
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1 Consolidated ClickCar Holdings Pty Ltd ACN 648 091 418 Annual report for the financial year ended 30 June 2024 For personal use only
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2 Contents Directors’ report 3 Auditor’s independence declaration 5 Independent auditor’s report 6 Directors’ declaration 9 Consolidated statement of comprehensive income 10 Consolidated statement of financial position 11 Consolidated statement of changes in equity 12 Consolidated statement of cash flows 13 Notes to the consolidated financial statement 14 For personal use only
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3 Consolidated ClickCar Holdings Pty Ltd Directors’ report For the year ended 30 June 2024 The directors of ClickCar Holdings Pty Ltd (the Company) submit herewith the annual report of the company and its subsidiary (the Group) for the financial year ended 30 June 2024. In order to comply with the provisions of the Corporations Act 2001, the directors report is as follows: The names of the directors of the company during or since the end of the financial year are: Yosuke Sandy Hall Appointed 19 February 2021 Jason Sonny Lenga Appointed 19 February 2021 Lachlan Ross MacGregor Appointed 6 April 2021 Adam Alexander Valkin Appointed 31 March 2022 Principal activities The company is a fully digital used car dealership, headquartered in Sydney, Australia. Its principal activities in the course of the financial year were the purchase, reconditioning and sale of used cars online. Review of operations The net loss for the financial period ended 30 June 2024 after income tax was $33,407,741 (2023: $26,424,598). Significant Changes in state of affairs There was no significant change in the state of affairs of the company during the financial period. Environmental regulation The Company is not subject to any significant environmental regulation under Australian Commonwealth or State Law. Shares under Option The Group has unissued ordinary shares under option that carry no dividends or voting rights prior to exercising. Shares under option in the employee share option plan are subject to a service condition and vest over a period up to 4 years. Shares issued on the exercise of options There were no ordinary shares of the Company issued on the exercise of options during the period ended 30 June 2024 and up to the date of this report. Matters subsequent to the end of the financial period Convertible notes committed Subsequent to year end, the Company received commitment of $30,000,000 for the issuance of convertible notes. The convertible notes are unsecured with accrued interest capitalised. For personal use only
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4 Floorplan settlement In December 2024, the Group settled the full Floorplan liability and has no outstanding Floorplan liability as at the date of this report. Other than the matters disclosed, the directors are not aware of other matters or circumstances arising subsequent to the reporting date up to the approval date of the Financial Statements, which will require disclosure in these results. Dividends No dividends have been paid since the start of the financial year. Indemnification of officers and auditors During the financial year, the company paid a premium in respect of a contract insuring the directors of the company (as named above) and all executive officers of the company and of any related body corporate against a liability incurred as such a directo r 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 an officer or auditor. Proceedings on behalf of the 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 to 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 part of those proceedings. Auditor’s independence declaration The auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is included on page 5 . Rounding off of amounts The company is a company of the kind referred to in ASIC Corporations (Rounding in Financials/Directors’ Reports) Instrument 2016/191, dated 24 March 2016, and in accordance with that Corporations Instrument amounts in the directors’ report and the financi al statements are rounded off to the nearest dollar, unless otherwise indicated. This directors’ report is signed in accordance with a resolution of directors made pursuant to s.298(2)(a) of the Corporations Act 2001. On behalf of the Directors Lachlan Ross MacGregor Director For personal use only
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Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities (collectively, the “Deloitte organisation”). DTTL (also referred to as “Deloitte Global”) and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Liability limited by a scheme approved under Professional Standards Legislation. Member of Deloitte Asia Pacific Limited and the Deloitte organisation. Dear Directors, Auditor’s Independence Declaration to ClickCar Holdings Pty Ltd In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration of independence to the Directors’ of ClickCar Holdings Pty Ltd. As lead audit partner for the audit of the financial report of ClickCar Holdings Pty Ltd for the 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 DELOITTE TOUCHE TOHMATSU David Haynes Partner Chartered Accountants Deloitte Services Pty Ltd Quay Quarter Tower 50 Bridge Street Sydney NSW 2000 Australia Tel: +61 2 9322 7000 www.deloitte.com.au www.deloitte.com.au20 February 2025 The Directors’ ClickCar Holdings Pty Ltd 134 Euston Road Alexandria, NSW, 2015 For personal use only
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Liability limited by a scheme approved under Professional Standards Legislation. Member of Deloitte Asia Pacific Limited and the Deloitte organisation. Deloitte Touche Tohmatsu ABN 74 490 121 060 50 Bridge Street Sydney, NSW, 2000 Australia Tel: +61 2 9322 7000 www.deloitte.com.au Independent Auditor’s Report to the Directors’ of ClickCar Holdings Pty Ltd Report on the Audit of the Financial Report Opinion We have audited the financial report of ClickCar Holdings Pty Ltd (the “Company”) and its subsidiary (the “Group”) which comprises the consolidated statement of financial position as at 30 June 2024, the consolidated statement of 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, and the directors’ declaration. In our opinion, the accompanying financial report of the Group is in accordance with theCorporations Act 2001, including: Giving a true and fair view of the Group’s financial position as at 30 June 2024 and of their financial performance for the year then ended; and Complying with Australian Accounting Standards – Simplified Disclosures and the Corporations Regulations 2001. 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 Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (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 confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Other Information The directors are responsible for the other information. The other information comprises the information included in the Group’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 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, For personal use only
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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 in accordance with the Corporations Act 2001, including giving a true and fair view of the financial position and performance of the Group in accordance with Australian Accounting Standards – Simplified Disclosures; and For such internal control as the directors determine is necessary to enable the preparation of the financial report in accordance with the Corporations Act 2001, including giving a true and fair view of the financial position and performance of the Company, and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the ability of the Company 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 Company 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 Group’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 Group’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 Group 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. For personal use only
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Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the Group’s 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. DELOITTE TOUCHE TOHMATSU David Haynes Partner Chartered Accountants Sydney, 20 February 2025 For personal use only
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9 Directors’ declaration The directors declare that: (a) in the directors’ opinion, there are reasonable grounds to believe that the Group will be able to pay its debts as and when they become due and payable; and (b) in the directors’ opinion, the attached financial statements and notes thereto are in accordance with the Corporations Act 2001, including compliance with Australian Accounting Standards – Simplified Disclosures, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and (c) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. Signed in accordance with a resolution of the directors made pursuant to s.295(5)(a) of the Corporations Act 2001. On behalf of the Directors Lachlan Ross MacGregor Director Sydney, 20 February 2025 For personal use only
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10 Consolidated ClickCar Holdings Pty LtdStatement of comprehensive income For the year ended 30 June 2024 Notes Year ended 30 June 2024 $ Year ended 30 June 2023 $ Continuing operations Revenue - vehicles 68,207,963 47,577,934 Revenue - other 719,906 412,535 Total revenue 68,927,869 47,990,469 Total cost of sales (67,995,966) (46,166,374) Gross profit - vehicles 210,632 1,439,672 Gross profit - other 721,271 384,423 Total gross profit 931,903 1,824,095 Employee benefit expenses (15,386,996) (12,418,894) Marketing expenses (4,621,797) (5,778,718) Occupancy expenses (4,914,476) (3,894,110) Depreciation & amortisation expenses 4 (4,864,558) (2,642,912) Other expenses (4,574,270) (4,457,384) Net finance income 4 22,000 499,956 Foreign exchange gain 453 443,369 Loss before tax (33,407,741) (26,424,598) Income tax expense 5 - - Loss after tax for the Year (33,407,741) (26,424,598) Other comprehensive income for the year, net of tax - - Total comprehensive loss for the Year (33,407,741) (26,424,598) The above statement of comprehensive income should be read in conjunction with the accompanying notes.For personal use only
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11 Consolidated ClickCar Holdings Pty Ltd Statement of financial position For the year ended 30 June 2024 Notes 2024 $ 2023 $ Assets Current assets Cash and cash equivalents 7,890,516 22,827,294 Trade and other receivables 6 1,203,832 1,729,918 Inventories 20,525,348 32,896,654 Other assets 637,859 577,801 Total current assets 30,257,555 58,031,667 Non-current assets Right-of-use assets 7 3,039,504 3,578,506 Property, plant and equipment 8 2,612,382 3,100,957 Intangible assets 9 3,331,927 2,458,257 Other financial assets 10 1,018,444 533,066 Total non-current assets 10,002,257 9,670,786 Total assets 40,259,812 67,702,453 Liabilities Current liabilities Trade and other payables 11 3,252,133 4,768,895 Lease liabilities 12 2,608,154 1,571,400 Provisions 13 1,031,683 787,844 Borrowings 14 7,576,267 - Total current liabilities 14,468,237 7,128,139 Non-current liabilities Lease liabilities 12 688,376 2,203,432 Total non-current liabilities 688,376 2,203,432 Total liabilities 15,156,613 9,331,571 Net assets 25,103,199 58,370,882 Equity Issued capital 15 94,961,888 94,961,888 Share-based payments reserves 17 380,275 240,217 Accumulated losses (70,238,964) (36,831,223) Total equity 25,103,199 58,370,882 The above statement of financial position should be read in conjunction with the accompanying notes.For personal use only
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12 Consolidated ClickCar Holdings Pty Ltd Statement of changes in equity For the year ended 30 June 2024 Issued capital Share-based payments reserves Accumulated losses Total equity Notes $ $ $ $ Balance as at 1 July 2022 94,459,569 - (10,406,625) 84,052,944 Issuance of share capital 15 502,319 - - 502,319 Share-based payment expenses - 240,217 - 240,217 Total comprehensive loss for the year - - (26,424,598) (26,424,598) Balance at 30 June 2023 94,961,888 240,217 (36,831,223) 58,370,882 Balance as at 1 July 2023 94,961,888 240,217 (36,831,223) 58,370,882 Share-based payment expenses 17 - 140,058 - 140,058 Total comprehensive loss for the year - - (33,407,741) (33,407,741) Balance at 30 June 2024 94,961,888 380,275 (70,238,964) 25,103,199 The above statement of changes in equity should be read in conjunction with the accompanying notes.For personal use only
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13 Consolidated ClickCar Holdings Pty LtdStatement of cash flows For the year ended 30 June 2024 Notes Year ended 30 June 2024 $ Year ended 30 June 2023 $ Cash flows from operating activities Receipts from the sale of goods 69,072,675 48,017,459 Payments to suppliers for goods and services (85,994,291) (85,024,297) Interest paid (104,360) (3,988) Interest received 420,159 617,836 Net cash used in operating activities 15 (16,605,817) (36,392,990) Cash flows from investing activities Proceeds from sales of property, plant and equipment 7,616 - Payments to acquire property, plant and equipment (160,151) (834,232) Payments to acquire intangible assets (2,814,848) (2,251,767) Payments for funds on deposit (485,378) (266) Net cash used in investing activities (3,452,761) (3,086,265) Cash flows from financing activities Proceeds from issuance of shares - 502,319 Repayment of borrowings (3,244,241) - Proceeds from borrowings 10,820,508 - Net lease payments (2,454,467) (1,734,929) Net cash generated/ (used) by financing activities 5,121,800 (1,232,610) Net decrease in cash and cash equivalents (14,936,778) (40,711,865) Cash and cash equivalents at the beginning of the 22,827,294 63,539,159 Cash and cash equivalents at the end of the year 7,890,516 22,827,294 The above statement of cash flows should be read in conjunction with the accompanying notes.For personal use only
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14 Notes to the consolidated financial statements 1. Reporting entity ClickCar Holdings Pty Ltd (the Company) is a company limited by shares that is incorporated and domiciled in Australia. The Group’s principal place of business is at 134 Euston Road, Alexandria NSW 2015. These consolidated financial statements compromise the company and its subsidiary (the Group) and represent the 12 month financial period from 1 July 2023 to 30 June 2024. The Group is a for profit entity and primarily is involved in the purchase, reconditioning and sale of used cars online. 2. Basis of preparation These general purpose financial statements have been prepared in accordance with the Corporations Act 2001, Australian Accounting Standards and other authoritative pronouncements issued by the Australian Accounting Standards Board (AASB), and comply with other requirements of the law for profit making entities. Amounts in these financial statements are stated in Australian dollars unless otherwise noted. The financial statements comply with the recognition and measurement requirements of Australian Accounting Standards, the presentation requirements in those Standards as modified by AASB 1060 General Purpose Financial Statements - Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities (AASB 1060) and the disclosure requirements in AASB 1060. Accordingly, the financial statements comply with Australian Accounting Standards – Simplified Disclosures. Going concern The consolidated financial report has been prepared on a going concern basis, which contemplates continuity of normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business. The Group reported an operating loss of $33,407,741 for the year ended 30 June 2024 (2023: loss of $26,424,598) and is in a net asset position of $25,103,199 (2023: $58,370,882). Subsequent to year end, the Company received commitment of $30,000,000 for the issuance of convertible notes. The convertible notes are unsecured with accrued interest capitalised. Based on the above, the Company has adequate cash resources to meet its day-to-day working capital requirements at the date of this report and for the subsequent twelve months. For personal use only
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15 3. Judgements and key sources of estimation uncertainty There are no significant judgements made in applying accounting policies that have significant effect on the amounts recognised in the financial statements. Lease term The lease term is a significant component in the measurement of both the right-of-use asset and lease liability. Management applies judgement in determining whether there is reasonable certainty that an option to extend the lease will be exercised, or an option to terminate the lease will not be exercised, when ascertaining the periods to be included in the lease term. In determining the lease term, all facts and circumstances that create an economical incentive to exercise an extension option, or not to exercise a termination option, are considered at the lease commencement date. Factors considered may include the importance of the asset to the Group's operations; comparison of terms and conditions to prevailing market rates; existence of significant leasehold improvements; and the costs and disruption to replace the asset. The Group reassesses whether it is reasonably certain to exercise an extension option, or not exercise a termination option, if there is a significant event or significant change in circumstances. Inventory revaluation A significant component of the carrying value of inventory is the assessment of the net realisable value. In determining the net realisable value, management has after consideration of third party published vehicle prices, made judgements on the net realisable value on a vehicle by vehicle basis. Current market trends, historic industry data and extensive internal industry experience has been used in determining the net realisable value. Vehicles that have yet to progress through the reconditing process or are in progress are considered in this assessment and are adjusted to reflect the average cost to recondition a vehicle in the period. For personal use only
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16 4. Expenses Year ended 30 June 2024 $ Year ended 30 June 2023 $ Loss before income tax includes the following specific expenses Depreciation and amortisation Leasehold improvements 265,250 256,374 Transport fleet 92,707 85,422 Motor vehicles 4,054 - Workshop equipment 114,455 103,358 Computer equipment 108,875 93,328 Furniture and fittings 56,495 54,028 Right-of-use assets 2,221,314 1,450,688 Software 2,001,408 599,714 Total depreciation and amortisation 4,864,558 2,642,912 Finance (income)/costs* Interest income (420,159) (617,836) Finance costs 104,360 3,988 Interest charges on lease liabilities 293,799 113,892 Total finance income (22,000) (499,956) Superannuation expense Defined contribution superannuation expense 1,518,776 1,150,001 * Finance costs are expensed in the year in which they are incurred For personal use only
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17 5. Income Tax Year ended 30 June 2024 $ Year ended 30 June 2023 $ Income tax expense Current tax expense - - Deferred tax - organisation and reversal of - - Aggregate income tax expense - - Deferred tax included in income tax expense comprises: Increase in deferred tax - - Numerical reconciliation of income tax benefit and tax at the statutory rate Loss before income tax expense (33,407,741) (26,424,598) Tax at the statutory tax rate of 30% (2023: 25%) 10,022,322 6,606,150 Tax effect amounts which are not deductible in calculating taxable income: Non-deductible expenses (67,172) (732,246) Tax losses not recognised (8,342,218) (5,160,292) Adjustment for prior years (93,900) 49,469 Deferred tax not recognised (1,519,032) (763,081) Income tax expense - - Deferred tax Deferred tax comprises temporary differences attributable to: Amounts recognised other than in equity: Property, plant and equipment 170,923 82,208 Right-of-use assets 77,108 49,081 Provision for employee benefits 193,339 116,836 Contract liabilities 394,815 263,728 Accrued expenses 156,862 132,593 Capitalised software development costs 359,375 - Deferred tax assets not recognised (1,519,032) (763,081) Other items 166,611 118,635 Deferred tax - - The Group has considered whether it is within the scope of the Pillar Two top up tax bills that were introduced by the Government to the Australian Parliament on 4 July 2024. As the scope of the legislation is that it will apply to large multinational entities with annual global revenue of EUR750,000,000 or more, the Group has concluded that it will not be within the scope of the legislation and therefore is not impacted at this time. Unused tax losses carried forward for which no deferred tax has been recognised is $64,606,081 (2023: $33,746,364). The amounts can be carried forward indefinitely, subject to meeting certain criteria of the relevant taxation law.For personal use only
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18 6. Trade and other receivables 2024 $ 2023 $ Trade Receivables 59,268 115,548 GST receivable and notional GST 1,053,678 1,506,538 Other receivables 90,886 107,832 1,203,832 1,729,918 7. Right-of-use assets 2024 $ Net carrying amounts Buildings 3,039,504 Balance as at 1 July 2023 3,578,506 Lease modifications* 1,682,312 Depreciation (2,221,314) Balance at 30 June 2024 3,039,504 2023 $ Net carrying amounts Buildings 3,578,506 Balance as at 1 July 2022 1,755,127 Lease modifications** 3,274,067 Depreciation (1,450,688) Balance at 30 June 2023 3,578,506 *Lease modification relates to rent increase in line with market rates. No new lease contracts were entered into during the financial year ended 30 June 2024. **As at 1st April 2023, the Group exercised its rights to a lease extension of 24 months, and a modification was performed at this date. For personal use only
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19 8. Property, plant and equipment Leasehold improvements Transport fleet Motor vehicles Workshop equipment Computer equipment Furniture and fittings Total Year Ended 2024 $ $ $ $ $ $ $ Cost Balance as at 1 July 2023 1,011,1631,392,747 - 791,108 381,900 410,5543,987,472 Additions 933 1,30053,627 30,114 67,519 6,658 160,151 Disposals - - - - (10,793) - (10,793) Balance as at 30 June 2024 1,012,0961,394,04753,627 821,222 438,626 417,2124,136,830 Accumulated depreciation Balance as at 1 July 2023 (415,559)(105,951) - (162,877)(122,529) (79,599)(886,515) Depreciation (265,250)(92,707)(4,054) (114,455)(108,875) (56,495)(641,836) Disposals - - - - 3,903 - 3,903 Balance as at 30 June 2024 (680,809)(198,658)(4,054) (277,332)(227,501)(136,094)(1,524,448) Carrying amounts At 30 June 2024 331,2871,195,38949,573 543,890 211,125 281,1182,612,382 Year Ended 2023 $ $ $ $ $ $ $ Cost Balance as at 1 July 2022 1,042,325 699,044 - 727,411 295,987 389,8353,154,602 Additions (31,162)693,703 - 63,697 86,550 21,444 834,232 Disposals - - - - (637) (725) (1,362) Balance as at 30 June 2023 1,011,1631,392,747 - 791,108 381,900 410,5543,987,472 Accumulated depreciation Balance as at 1 July 2022 (159,185)(20,529) - (59,519) (29,563) (25,805)(294,601) Depreciation (256,374)(85,422) - (103,358) (93,328) (54,028)(592,510) Disposals - - - - 362 234 596 Balance as at 30 June 2023 (415,559)(105,951) - (162,877)(122,529) (79,599)(886,515) Carrying amounts At 30 June 2023 595,6041,286,796 - 628,231 254,303 330,9553,100,957 For personal use only
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20 9. Intangible Assets Software Work in Progress Total Year Ended 2024 $ $ $ Cost Balance as at 1 July 2023 3,016,547 100,000 3,116,547 Additions 2,814,848 60,230 2,875,078 Transfer to additions 100,000 (100,000) - Balance as at 30 June 2024 5,931,395 60,230 5,991,625 Accumulated depreciation Balance as at 1 July 2023 (658,290) - (658,290) Amortisation expense (2,001,408) - (2,001,408) Balance as at 30 June 2024 (2,659,698) - (2,659,698) Carrying amounts At 30 June 2024 3,271,697 60,230 3,331,927 Year Ended 2023 Cost Balance as at 1 July 2022 379,780 385,000 764,780 Additions 2,251,767 100,000 2,351,767 Transfer to additions 385,000 (385,000) - Balance as at 30 June 2023 3,016,547 100,000 3,116,547 Accumulated depreciation Balance as at 1 July 2022 (58,576) - (58,576) Amortisation expense (599,714) - (599,714) Balance as at 30 June 2023 (658,290) - (658,290) Carrying amounts At 30 June 2023 2,358,257 100,000 2,458,257 For personal use only
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21 10. Other financial assets 2024 $ 2023 $ Non current Term deposit held to maturity* 1,018,444 533,066 *Term deposits are held between 15 months and 25 months. 11. Trade and other payables 2024 $ 2023 $ Trade payables 46,742 145,084 Accruals 1,559,581 2,286,054 Employee related payables 418,535 1,283,416 Unearned revenue 1,227,275 1,054,341 3,252,133 4,768,895 For personal use only
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22 12. Lease liabilities 2024 $ 2023 $ Secured Current 2,608,154 1,571,400 Non-current 688,376 2,203,432 3,296,530 3,774,832 Future minimum lease payments The future minimum lease payments arising under the Group's lease contracts at the end of the reporting year are as follows: 2024 $ 2023 $ Not later than one year 2,750,525 1,785,829 Later than one year but not later than five years 692,675 2,299,096 3,443,200 4,084,925 13. Provisions 2024 $ 2023 $ Current Employee benefits 926,065 780,344 Warranties 105,618 7,500 1,031,683 787,844 Movement in provisions Employee Benefits Warranties Total $ $ $ Opening balance at 1 July 2023 780,344 7,500 787,844 Additions 1,315,947 98,118 1,414,065 Amounts utilised (1,170,226) - (1,170,226) Balance at 30 June 2024 926,065 105,618 1,031,683 For personal use only
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23 14. Borrowings 2024 $ 2023 $ Current Floorplan 7,576,267 - 7,576,267 - Floorplan Floorplan finance is on a vehicle by vehicle basis and secured by the underlying vehicle. The weighted average interest rate is 8.01% (2023: nil). 15. Issued Capital 2024 Shares 2024 $ 2023 Shares 2023 $ Fully paid ordinary shares issued 2 22 2 22 Founder shares issued 44,000,000 44 44,000,000 44 Preference Seed shares issued 24,719,801 25,467,809 24,719,801 25,467,809 Preference Series A shares issued 20,210,486 69,494,013 20,210,486 69,494,013 Balance 88,930,289 94,961,888 88,930,289 94,961,888 Ordinary and founder shares have the same rights to vote and attend general meetings. Ordinary and founder shares shall act together as a single class on all matters. Founder shares shall count to one ordinary shares upon conversion. Preference Seed and Series A shares shall at any time convert into ordinary shares. Preference Seed and Series A shares shall carry voting rights at general meetings, being equal to the amount of ordinary shares into which the Preference Seed and Series A shares shall convert. Preference Seed and Series A shares shall be entitled to a dividend, if declared to ordinary shareholders, equivalent to the amount that would have been declared on the Preference Seed and Series A shares, upon conversion to ordinary shares. For personal use only
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24 16. Notes to the statement of cash flows 2024 2023 $ $ Loss after tax for the Year (33,407,741) (26,424,598) Adjustments for: (Gain)/loss on disposal of assets (726) 766 Depreciation and amortisation 2,643,244 1,192,224 Depreciation of right-of-use assets 2,221,314 1,450,688 Interest expense on lease liabilities 293,799 113,892 Share-based payment expenses 140,058 240,217 (Increase)/decrease in: Trade and other receivables 526,086 (274,779) Inventory - vehicles 12,371,306 (14,822,452) Other current assets (60,058) (46,073) Increase/(decrease) in: Trade and other payables (1,576,938) 1,672,144 Provisions 243,839 504,981 Net cash used in operating activities (16,605,817) (36,392,990) 17. Share-based payments Equity settled share option plan The Group has an employee share option plan for certain employees of the Group as approved by the directors. Shares under option in the employee share option plan may be subject to a service condition and vest over a period up to 4 years. There were no shares under options exercised during the year ended 30 June 2024. Share-based payment expense for the year was $140,058 (2023: $240,217). For personal use only
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25 18. Related Party Transactions Parent Entity ClickCar Holdings Pty Ltd is the parent entity. Subsidiaries Interests in subsidiaries are set out in note 20. Transactions with related parties There were no material transactions with related parties at the current reporting date. Receivable from and payable to related parties There were no trade receivables from or trade payables to related parties at the current reporting date. Loans from related parties There were no loans to or from related parties at the current reporting date. 19. Key Management Personnel Disclosures 2024 $ 2023 $ Compensation The aggregate compensation made to directors and other members of key management personnel of the Group is set out below: Short-term employee benefits 404,275 396,172 20. Subsidiaries Details of the Group's material subsidiaries at the end of the reporting year are as follows. Name of subsidiary Place of incorporations and operation % of ownership interest and voting power held by the Group 2024 % of ownership interest and voting power held by the Group 2023 Clickcar Australia Pty Ltd Australia 100% 100% For personal use only
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26 21. Parent entity information 2024 $ 2023 $ Assets Current assets 6,052,651 20,526,189 Non-current assets 98,674,408 79,258,350 Total assets 104,727,059 99,784,539 Liabilities Current liabilities 6,500 121,149 Non-current liabilities 4,939,570 - Total liabilities 4,946,070 121,149 Equity Issued capital 94,961,888 94,961,888 Reserves 380,275 240,217 Retained earnings 4,438,826 4,461,285 Total equity 99,780,989 99,663,390 Financial performance (Loss)/profit for the year (22,459) 795,492 Other comprehensive income - - Total comprehensive (loss)/income (22,459) 795,492 22. Remuneration of auditors 2024 $ 2023 $ Audit or review of financial reports*: 95,000 110,000 *The auditor of the Group is Deloitte Touche Tohmatsu. 23. Subsequent events Convertible note finalisation Subsequent to year end, the Company received commitment of $30,000,000 for the issuance of convertible notes. The convertible notes are unsecured with accrued interest capitalised. Floorplan settlement In December 2024, the Group settled the full Floorplan liability and has no outstanding Floorplan liability as at the date of this report. Other than the matters disclosed, the directors are not aware of other matters or circumstances arising subsequent to the reporting date up to the approval date of the Financial Statements, which will require disclosure in these results. For personal use only
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27 24. Material accounting policies Basis of accounting The financial statements have been prepared on the basis of historical cost, except for certain properties and financial instruments that are measured at revalued amounts or fair values at the end of each reporting period, 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. The principal accounting policies are set out below. (a) Basis of consolidation The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries) up to the reporting date. The Group ‘controls’ an entity which it has the power over the investee, is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. (b) Revenue recognition Revenue from contracts with customers 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. Variable consideration within the transaction price, if any, reflects concessions provided to the customer such as discounts, rebates and refunds, 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. Used Vehicles The Group recognises revenue upon the delivery of a vehicle to a customer or the pickup of a vehicle by a customer. For personal use only
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28 24. Material accounting policies (continued) (b) Revenue recognition (continued) Other revenue Finance income, commission and volume bonuses are recognised to the extent that the Group expects to receive the related income in the period in which the related sale or rendering of service is provided. (c) Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives, using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis. The estimated useful lives of property, plant and equipment are as follows: Leasehold improvements 4 years Computing equipment 1-5 years Workshop equipment 1-10 years Furniture and fittings 2-10 years Transport fleet 15 years (d) Right-of-use assets Right-of-use assets are depreciated over the shorter period of the lease term and the useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss as incurred. (e) Intangible assets Intangible assets acquired separately Intangible assets with finite lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised on a straight-line basis over their estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in For personal use only
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29 24. Material accounting policies (continued) (e) Intangible assets (continued) estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses. Intangible assets are amortised over a period of three years. Internally-generated intangible assets - research and development expenditure Expenditure on research activities is recognised as an expense in the period in which it is incurred. An internally-generated intangible asset arising from development (or from the development phase of an internal project) is recognised if, and only if, all of the following have been demonstrated: • The technical feasibility of completing the intangible asset so that it will be available for use or sale • The intention to complete the intangible asset and use or sell it • The ability to use or sell the intangible asset • How the intangible asset will generate probable future economic benefits • The availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset • The ability to measure reliably the expenditure attributable to the intangible asset during its development. The amount initially recognised for internally-generated intangible assets is the sum of the expenditure incurred from the date when the intangible asset first meets the recognition criteria listed above. Where no internally-generated intangible asset can be recognised, development expenditure is recognised in profit or loss in the period in which it is incurred. Subsequent to initial recognition, internally-generated intangible assets are reported at cost less accumulated amortisation and accumulated impairment losses, on the same basis as intangible assets that are acquired separately. (f) Inventories Inventories consist mainly of vehicles for the purpose of resale. Costs incurred directly related to the reconditioning of vehicles such as parts, labour and inbound logistics are capitalised to the cost of the vehicles on a specific identification basis. Vehicles are stated at the lower of cost and net realisable value. Net realisable value is determined with reference to the estimated selling price less estimated costs to recondition the vehicle. Selling prices are determined based on industry and market data. Each reporting period or if impairment is specifically identified, adjustments are made to the carrying value of vehicles to reflect the lower of cost and net realisable through cost of sales. For personal use only
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30 24. Material accounting policies (continued) (g) Taxation The income tax expense represents the sum of the tax currently payable and deferred tax. Current tax The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in profit or loss because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period. Deferred tax Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilise the benefits of the temporary differences and they are expected to reverse in the foreseeable future. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised based on tax laws and rates that have been enacted or substantively enacted at the reporting date. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. For the purposes of measuring deferred tax liabilities and deferred tax assets for investment properties that are measured using the fair value model, the carrying amounts of such properties are presumed to be recovered entirely through sale, unless the presumption is rebutted. The presumption is rebutted when the investment property is depreciable and is held within a business model whose objective is to consume substantially all of the economic benefits embodied in the investment property over time, rather than through sale. The directors For personal use only
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31 24. Material accounting policies (continued) (g) Taxation (continued) reviewed the Group's investment property portfolios and concluded that none of the Group's investment properties are held under a business model whose objective is to consume substantially all of the economic benefits embodied in the investment properties over time, rather than through sale. Therefore, the directors have determined that the ‘sale’ presumption set out in the amendments to AASB 112 is not rebutted. As a result, the Group has not recognised any deferred taxes on changes in fair value of the investment properties as the Group is not subject to any income taxes on the fair value changes of the investment properties on disposal. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis. Current and deferred tax for the year Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case the current and deferred tax are also recognised in other comprehensive income or directly in equity, respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination. Additional information on accounting policies should be included where the entity has other material tax balances not covered by the above analysis, such as in relation to tax deductible share-based payment arrangements or impacts of tax consolidation. (h) Share-based payments Equity-settled share-based compensation benefits are provided to employees. Equity-settled transactions are options over shares that are provided to employees in exchange for the rendering of services. Equity‐settled share‐based payments are measured at the fair value of the equity instruments at the grant date. The fair value excludes the effect of non‐market‐based vesting conditions. The fair value determined at the grant date of the equity‐settled share‐based payments is expensed on a straight‐line basis, with a corresponding increase in equity over the vesting period. For personal use only