Announcement PDF Appendix 4D Half year report 1. Company details Name of Entity Felix Group Holdings Limited ABN 65 159 858 509 Reporting period: For the half-year ended 31 December 2023 Previous period: For the half-year ended 31 December 2022 2. Results for announcements to the market 31 Dec 2023 31 Dec 2022 Up/Down % Change Revenues and other income from ordinary activities $3,278,437 $2,468,916 Up 33% Loss from ordinary activities after tax attributable to the owners of Felix Group Holdings Limited $2,887,800 $3,319,170 Down 13% Total comprehensive loss attributable to the owners of Felix Group Holdings Limited $2,898,525 $3,325,440 Down 13% Dividends º No final dividend was paid in relation to the year ended 30 June 2023. º No interim dividend will be paid in relation to the half-year ended 31 December 2023. Comments º The loss for the consolidated entity after providing for income tax amounted to $2,887,800 (31 December 2022: $3,319,170). Further information on the results is detailed in ‘the Directors’ report which is part of this interim report. 3. Net tangible assets Net tangible assets per ordinary security Reporting period (cents) Previous period (cents) $0.02 $0.01 4. Control gained over entities No control has been gained over entities during the period. Half Year Financial Report 2024 Felix Group Holdings Ltd ACN 159 858 509 1 Appendix 4D Half year report 5. Loss of control over entities No loss of control has occurred over entities during the period. 6. Details of associates and joint venture entities There are no associates or joint ventures. 7. Audit qualification or review Details of audit/review dispute or qualification (if any): The financial statements were subject to a review by the auditors and the review report is attached as part of the Interim Report. The review report is unqualified. 8. Attachments Details of attachments (if any): The Interim Report of Felix Group Holdings Limited for the half-year ended 31 December 2023 is attached. 9. Signed Michael Bushby Director 26 February 2024 Half Year Financial Report 2024 Felix Group Holdings Ltd ACN 159 858 509 2 Interim Report Dec 2023 Half Year Financial Report 2024 Felix Group Holdings Felix Group LtdHoldings ACN 159Ltd 858ACN 509159 858 509 3 Directors’ report Directors The directors present their report, together with the financial statements, on the consolidated entity consisting of Felix Group Holdings Limited (“Felix” or ‘the Company’) and the entities it controlled (‘the Consolidated Entity’ or “the Group”) at the end of, or during, the half-year ended 31 December 2023. The following persons were directors of Felix Group Holdings Limited during the whole of the financial half-year and up to the date of this report, unless otherwise stated: º º º º º º Principal activities Michael Bruce Bushby Michael Peter Davis Joycelyn Cheryl Morton Robert William Phillpot George Humphry Davy Rolleston Michael Anthony Trusler During the period, the principal continuing activity of the Group consisted of a cloudbased SaaS solution to its Contractor and Vendor customer base to make it easier for them to find, manage and engage with each other. The Felix platform automates and streamlines a range of critical, procurement-focused business processes. Contractors are contracted by asset owners to build or maintain capital works projects in the commercial construction and related industries. Vendors comprise the Contractors suppliers and include subcontractors, equipment providers and service and materials providers. Review of operations Half Year Financial Report 2024 Felix achieved a number of significant milestones during H1 FY24 while executing against strategic objectives of accelerating Tier 1 Contractor growth, driving expansion revenue, and achieving sustainable cashflow breakeven. During H1 FY24, the Company signed multiple new Contractors, delivered significant expansion deals, and reduced net operating cash outflows in line with the Company’s aim of achieving operating cashflow breakeven by Q1 FY25. In addition, Felix also made progress against its product roadmap, including key feature development and international data compliance and security certificates, and continued to grow the Vendor Marketplace. Felix Group Holdings Ltd ACN 159 858 509 4 Directors’ report EBITDA (non-IFRS) The EBITDA performance of the Group is a non-IFRS measure. EBITDA provides an understanding of the company’s operational performance by excluding non-operating expenses and allows for easier comparison with industry peers. H1 FY24 H1 FY23 % Change Contractor Revenue 2,215,821 1,452,819 53% Vendor Revenue 1,005,726 919,854 9% Other Income 56,890 96,243 -41% 3,278,437 2,468,916 33% (3,976,474) (3,776,118) 5% (42,382) (88,191) -52% Other expenses from ordinary activities (1,791,699) (1,770,890) 1% TOTAL OPERATING EXPENSES (5,810,555) (5,635,199) 3% EBITDA (2,532,118) (3,166,283) -20% Depreciation & Amortisation (351,014) (146,495) 140% Finance Costs (4,668) (6,392) -27% (2,887,800) (3,319,170) -13% Revenue TOTAL REVENUE & INCOME Operating Expenses Employee benefits Share Based Payments LOSS BEFORE INCOME TAX New contract wins In H1 FY24, Felix signed five leading Contractors, bringing the total number of Contractors on the enterprise platform to 49 (see Figure 1). Notably, Felix signed the Company’s first international contract outside of APAC with a global multi-disciplinary engineering, project delivery and operations management Contractor. Predominantly focused on the mining, minerals, and metals industry, the Contractor operates across Africa and the Middle East, North and South America, and APAC. The contract builds on Felix’s already considerable international momentum, with its platform utilised on over 90 international projects by existing customers. The contract also validates Felix’s capital-light international expansion strategy, which has the potential to reshape Felix’s financial profile due to the size and scale of international opportunities in the pipeline. Felix also saw strong momentum in new adjacent sectors such as mining & resources, as highlighted by the contracts signed with an ASX-listed gold miner, an ASX-listed provider of network services, as well as MMA offshore, a marine services provider. These contracts represent strong validation of the broad applicability of the platform, with the momentum built providing Felix leverage in driving further adoption across adjacent sectors. Half Year Financial Report 2024 Felix Group Holdings Ltd ACN 159 858 509 5 Directors’ report Figure 1. Contract Customers 38 28 H1 FY21 Expansions across existing customers 40 43 45 49 31 H2 FY21 H1 FY22 H2 FY22 H1 FY23 H2 FY23 H1 FY24 Five expansion deals were signed in H1 FY24, including a record expansion deal with Downer Group (ASX:DOW) (NZD:DOW), a leading ASX and NZX-listed integrated services provider. A significant expansion deal was also signed with NRW Holdings (ASX:NWH), a leading ASX-listed construction and mining company headquartered in Perth. The 3-year enterprise contract with NRW followed an initial successful contract with Primero, a subsidiary of NRW, demonstrating Felix’s ability to upsell into larger parent organisations of its existing customer base. The ongoing signing of expansion deals highlights the mission critical nature of Felix’s solution for existing customers, while also generating high margin revenue from Felix’s existing customer base. Driven by the signing of new customers and implementation of significant expansion deals during H1 FY24, Felix delivered rapid Contractor MRR growth of 67% on pcp (refer to Figure 2), with Contractor MRR for the closing month of H1 FY24 reaching $426k. Felix also delivered record Contractor Net Revenue Retention (NRR) in H1 FY24, achieving a Contractor NRR of 116% at the end of the period. The strong Contractor NRR result was delivered despite one customer churning in H1 FY24. . Figure 2. Contractor MRR (A$’000) $426 $333 $255 $172 $184 $135 $115 H1 FY21 Half Year Financial Report 2024 H2 FY21 H1 FY22 Felix Group Holdings Ltd ACN 159 858 509 H2 FY22 H1 FY23 H2 FY23 H1 FY24 6 Directors’ report Group ARR Total Group ARR was at $6.8m in H1 FY24 (refer to Figure 3), increasing 39% on pcp, with Contractor ARR contributing $4.9m. Contractor ARR grew strongly by 55% on pcp, driving the increase in Contractor ARR contribution from 65% to 73% between H1 FY23 and H1 FY24. The growth in Contractor ARR aligns with Felix’s strategic focus on scaling Contractor ARR, which represents a higher margin opportunity relative to Vendor ARR. Figure 3. Group Contracted ARR ($m) 6.8 6.0 4.7 3.9 2.1 2.0 4.2 3.8 1.9 1.8 1.9 H1 FY21 H2 FY21 1.7 1.9 1.8 3.2 2.8 2.4 H1 FY22 H2 FY22 Contractor 1.9 4.9 H1 FY23 4.0 H2 FY23 4.9 H1 FY24 Vendor Cashflow improvements Felix has also made significant progress in improving the Company’s cashflow profile, with H1 FY24 cash receipts increasing 71% on pcp, while H1 FY24 operating outflows only increased 7% on pcp. Furthermore, cost base efficiencies made in H1 FY24 will reduce annualised operating cash outflows by 9% from January 2024 onwards. Felix has delivered a significant improvement in cashflow performance with total H1 FY24 net operating cash outflows of $1.3m, representing a 57% reduction relative to pcp. These improvements are in line with Felix’s aim of achieving sustainable cashflow breakeven in Q1 FY25. Platform development During H1 FY24, Felix achieved SOC 2 Type 1 certification and GDPR compliance, which are international data security certifications for North America and Europe, respectively. This compliments Felix’s ISO27001 certification, which was obtained in May 2021, another internationally recognised data security standard. These certifications recognise the security of Felix’s governance, infrastructure, systems, and ability to protect customer information from unauthorised access. Furthermore, these certifications are often security requirements for large organisations, and is expected to help reduce the sales cycles for international customers as well as significantly expand Felix’s addressable market. Felix also released an AI-powered information extraction and validation solution for compliance documents during H1 FY24. The AI-powered solution will improve inefficiencies that currently exist for Vendors during onboarding stages and is expected to enhance Contractor sales by demonstrating the efficiency and accuracy in Felix’s onboarding processes. Vendor marketplace The onboarding of five new Contractors in H1 FY24 has continued to grow and scale the Vendor Marketplace, as these Contractors mandate the usage of Felix across their entire third-party supply chain of Vendors onto the platform. The number of Vendors in the Marketplace grew 14% on pcp, from 79,293 in H1 FY23 to 90,522 in H1 FY24 (refer to Figure 5). The increase in scale of the Vendor Marketplace supports Felix’s strategic aim of monetising the Marketplace in the medium-term, following the development of key modules and features. Half Year Financial Report 2024 Felix Group Holdings Ltd ACN 159 858 509 7 Directors’ report Figure 4. Number of Vendors in the Vendor Marketplace 90,522 79,293 81,496 66,818 59,003 52,234 43,865 H1 FY21 Engagement metrics H2 FY21 H1 FY22 H2 FY22 H1 FY23 H2 FY23 H1 FY24 Felix has observed strong growth across of its key platform engagement metrics throughout H1 FY24, reflecting expanding usage of its platform and indicating the platform’s deepened engagement within customer systems and processes. Key highlights were (for the half-year period ending 31 December 2023): • • • • Number of Active Projects: +52% pcp Requests for Quotations (RFQ) sent by Contractors: +67% pcp Total Contractor User Accounts: +25% pcp Total active Vendor Compliance Documents: +6% pcp Rounding of amounts The Company is of a kind referred to in Instrument 2016/191, issued by the Australian Securities and Investments Commission, relating to ‘rounding-off’. Amounts in this report have been rounded off in accordance with that Corporations Instrument to the nearest dollar. Auditor’s independence declaration A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out immediately after this directors’ report. This report is made in accordance with a resolution of directors, pursuant to section 306(3)(a) of the Corporations Act 2001. On behalf of the directors Michael Bushby Director 26 February 2024 Half Year Financial Report 2024 Felix Group Holdings Ltd ACN 159 858 509 8 Auditor's Independence Declaration Tel: +61 7 3237 5999 Fax: +61 7 3221 9227 www.bdo.com.au Level 10, 12 Creek Street Brisbane QLD 4000 GPO Box 457 Brisbane QLD 4001 Australia DECLARATION OF INDEPENDENCE BY NIGEL BATTERS TO THE DIRECTORS OF FELIX GROUP HOLDINGS LIMITED As lead auditor of Felix Group Holdings Limited for the year ended 31 December 2023, I declare that, to the best of my knowledge and belief, there have been: 1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and 2. No contraventions of any applicable code of professional conduct in relation to the audit. This declaration is in respect of Felix Group Holdings Limited and the entities it controlled during the period. N I Batters Director BDO Audit Pty Ltd Brisbane, 26 February 2024 BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation. Half Year Financial Report 2024 Felix Group Holdings Ltd ACN 159 858 509 9 Contents 12 Statement of profit or loss and other comprehensive income 13 Statement of financial position 14 Statement of changes in equity 15 Statement of cash flows 16 Notes to the financial statements 23 Directors’ declaration 24 Independent auditor’s review report to the members of Felix Group Holdings Limited Half Year Financial Report 2024 Felix Group Holdings Ltd ACN 159 858 509 10 Introduction General Information The financial statements cover Felix Group Holdings Limited as a consolidated entity consisting of Felix Group Holdings Limited and the entities it controlled at the end of, or during, the half-year. The financial statements are presented in Australian dollars, which is Felix Group Holdings Limited’s functional and presentation currency. Felix Group Holdings Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business are: Registered office & Principal place of business Unit 1F 24 Macquarie Street Teneriffe QLD 4005 A description of the nature of the consolidated entity’s operations and its principal activities are included in the directors’ report, which is not part of the financial statements. The financial statements were authorised for issue, in accordance with a resolution of directors, on 26 February 2024. Half Year Financial Report 2024 Felix Group Holdings Ltd ACN 159 858 509 11 Statement of profit or loss and other comprehensive income — For the half-year ended 31 December 2023 Consolidated Note 31 Dec 2023 $ 31 Dec 2022 $ Sales revenue 3 3,221,547 2,372,673 Other income: 4 56,890 96,243 Contractor expenses (452,666) (525,992) Depreciation & amortisation (351,014) (146,495) (3,976,474) (3,776,118) Finance costs (4,668) (6,392) Insurance (127,825) (80,849) Marketing & advertising (83,165) (100,263) Professional fees (230,329) (234,459) Project costs (110,999) (87,995) Share based payments (42,382) (88,191) Subscriptions (520,758) (361,219) Other expenses (265,957) (380,113) (2,887,800) (3,319,170) – – (2,887,800) (3,319,170) Items that may be reclassified subsequently to profit or loss Exchange differences on translating foreign controlled entities (10,725) (6,270) Other comprehensive income for the half-year, net of tax (10,725) (6,270) TOTAL COMPREHENSIVE INCOME FOR THE HALF-YEAR (2,898,525) (3,325,440) Cents Cents REVENUE EXPENSES Employee benefits LOSS BEFORE INCOME TAX EXPENSE Income tax expense LOSS AFTER INCOME TAX EXPENSE FOR THE HALF-YEAR OTHER COMPREHENSIVE INCOME Basic loss per share 14 ($0.02) ($0.02) Diluted loss per share 14 ($0.02) ($0.02) Half Year Financial Report 2024 Felix Group Holdings Ltd ACN 159 858 509 12 Statement of Financial Position — As at 31 December 2023 Consolidated Note 31 Dec 2023 $ 30 Jun 2023 $ Cash and cash equivalents 813,879 2,755,854 Trade and other receivables 358,227 561,626 Income tax receivable 166,159 514,539 3,640,040 14,150 Accrued contract costs 232,734 157,302 Prepayments 599,145 597,456 3,072 - 5,813,256 4,600,927 Assets Current assets Deposits held 5 Other Total current assets Non-current assets Property, plant and equipment 6 40,378 48,228 Intangibles 7 1,247,221 974,807 Right-of-use assets 8 78,762 101,266 Accrued contract costs 176,703 190,386 Total non-current assets 1,543,064 1,314,687 Total assets 7,356,320 5,915,614 1,311,633 1,262,712 3,386,368 2,655,044 46,417 43,217 Short term employee benefits 574,469 514,465 Total current liabilities 5,318,887 4,475,438 39,117 63,149 Long term employee benefits 275,407 324,506 Total non-current liabilities 314,523 387,655 Total liabilities 5,633,410 4,863,093 Net assets 1,722,910 1,052,521 Liabilities Current liabilities Trade and other payables Contract liabililites Lease liabilities 9 Non-current liabilities Lease liabilities 9 Equity Issued capital 10 52,940,938 49,414,406 Reserves 11 581,437 549,780 (51,799,465) (48,911,665) 1,722,910 1,052,521 Accumulated losses Total equity Half Year Financial Report 2024 Felix Group Holdings Ltd ACN 159 858 509 13 Statement of changes in equity — For the half-year ended 31 December 2023 Reserves Consolidated Issued capital $ Share Based Payments $ Foreign Exchange $ Accumulated losses $ Total equity $ 48,644,305 1,165,449 8,653 (42,786,971) 7,031,436 Loss after income tax expense for the half-year – – – (3,319,170) (3,319,170) Other comprehensive income for the half-year, net of tax – – (6,270) – (6,270) Total comprehensive income for the half-year – – (6,270) (3,319,170) (3,325,440) Transactions with owners in their capacity as owners: Contribution of equity – shares to be issued. 770,101 (681,910) – – 88,191 Balance at 31 December 2022 49,414,406 483,539 2,383 (46,106,141) 3,794,187 Balance at 1 July 2022 Reserves Consolidated Issued capital $ Share Based Payments $ Foreign Exchange $ Accumulated losses $ Total equity $ 49,414,406 539,786 9,994 (48,911,665) 1,052,521 Loss after income tax expense for the half-year – – – (2,887,800) (2,887,800) Other comprehensive income for the half-year, net of tax – – (10,725) – (10,725) Total comprehensive income for the half-year – – (10,725) (2,887,800) (2,898,525) Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs 3,526,532 – – – 3,526,532 – 42,382 – – 42,382 52,940,938 582,168 (731) (51,799,465) 1,722,910 Balance at 1 July 2023 Share-based payments capitalised Balance at 31 December 2023 Half Year Financial Report 2024 Felix Group Holdings Ltd ACN 159 858 509 14 Statement of cash flows — For the half-year ended 31 December 2023 Consolidated Note 31 Dec 2023 $ 31 Dec 2022 $ Receipts from operations (inclusive of GST) 5,080,220 2,972,140 Payments to suppliers and employees (inclusive of GST) (6,362,352) (5,945,678) (1,282,132) (2,973,538) Interest received 37,257 40,175 Interest and other finance costs paid (4,668) (3,196) (1,249,543) (2,936,559) (Payments for)/ Proceeds from deposits held (3,625,889) 4,000,263 Payments for property, plant and equipment (8,697) (4,389) (584,378) (330,751) (4,218,964) 3,665,123 Cash flows from operating activities Net cash from/(used in) operating activities Cash flows from investing activities Payments for intangibles Net cash from/(used in) investing activities Cash flows from financing activities Proceeds of share issue 10 3,822,400 - Payment of share issue costs 10 (295,868) - Net cash from/(used in) financing activities 3,526,532 - Net increase/(decrease) in cash and cash equivalents (1,941,975) 728,564 Cash and cash equivalents at the beginning of the financial half-year 2,755,854 4,877,545 813,879 5,606,109 Cash and cash equivalents at the end of the financial half-year Half Year Financial Report 2024 Felix Group Holdings Ltd ACN 159 858 509 15 Notes to the financial statements — For the half-year ended 31 December 2023 Note 1. Significant accounting policies These general purpose financial statements for the interim half-year reporting period ended 31 December 2023 have been prepared in accordance with Australian Accounting Standard AASB 134 ‘Interim Financial Reporting’ and the Corporations Act 2001, as appropriate for for-profit oriented entities. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 ‘Interim Financial Reporting’. These general purpose financial statements do not include all the notes of the type normally included in annual financial statements. Accordingly, these financial statements are to be read in conjunction with the annual report for the year ended 30 June 2023 and any public announcements made by the company during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001. The principal accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, unless otherwise stated. Going Concern The half year report has been prepared on a going concern basis which assumes continuity of normal business activities and realisation of assets and settlement of liabilities in the ordinary course of business. For the period ending 31, December 2023, the Group incurred a loss before income tax of $2,887,800 (1H FY23: $3,319,170) and experienced net cash outflows from operations of $1,249,543 (1H FY23: outflows of $2,936,559). The Group completed a two tranche Placement and SPP during the period. The transaction resulted in the Group raising an additional $3.82 million, before fees. The Group is currently free of any debt liabilities. The capital raise funds received, nil debt and improvement in net loss from operations indicate that no material uncertainty exists that may cast doubt on the Group’s ability to continue as a going concern and therefore, the Group will be able to realise its assets and discharge its liabilities in the normal course of business, and at the amounts stated in the financial report. The report has been prepared on a going concern basis. New or amended Accounting Standards & Interpretations adopted The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (‘AASB’) that are mandatory for the current reporting period. There was no material impact on the adoption of the new standards. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. Half Year Financial Report 2024 Felix Group Holdings Ltd ACN 159 858 509 16 Notes to the financial statements — For the half-year ended 31 December 2023 Note 2. Operating segments The Group provides a cloud-based SaaS solution to its Contractor and Vendor customer base in Australia and New Zealand. The Chief Executive Officer is Chief Operating Decision Maker (CODM). The CODM monitors the results of the Group on a consolidated basis and is therefore one reportable segment. Note 3. Revenue Consolidated 31 Dec 2023 $ 31 Dec 2022 $ Vendor Subscription Revenue 1,005,726 919,854 Contractor Subscription Revenue 2,215,821 1,452,819 3,221,547 2,372,673 3,221,547 2,372,673 – – 3,221,547 2,372,673 Timing of revenue recognition Revenue transferred over time Revenue transferred at a point in time For the six months of the 2024 period, revenue includes $1,831,590 (2023: $1,108,994) included in the contract liability balance at the beginning of the period broken down as follows. Consolidated Vendor Revenue Contractor Revenue 31 Dec 2022 $ 211,657 208,709 1,619,933 900,285 1,831,590 1,108,994 Consolidated Note 4. Other income 31 Dec 2023 $ 31 Dec 2022 $ Interest income 37,257 40,175 Other income 15,454 - Tax incentive 4,179 56,068 56,890 96,243 Total other income Half Year Financial Report 2024 31 Dec 2023 $ Felix Group Holdings Ltd ACN 159 858 509 17 Notes to the financial statements — For the half-year ended 31 December 2023 Consolidated Note 5. Deposits held 31 Dec 2023 $ 30 Jun 2023 $ Term deposit 3,625,890 - Rental deposit 14,150 14,150 3,640,040 14,150 Total deposits held At period end the Group held three term deposits totalling $3,625,890. There is a deposit totalling $500,000 maturing on 27 January 2024, a deposit totalling $1,065,092 maturing on 22 February 2024 and a deposit totalling $2,060,798 maturing on 24 April 2024. Consolidated Note 6. Non-current assets - property, plant and equipment 31 Dec 2023 $ 30 Jun 2023 $ Office equipment - at cost 17,700 15,005 Less: Accumulated depreciation (13,181) (12,696) Total office equipment 4,519 2,309 Computer equipment - at cost 249,218 243,215 Less: Accumulated depreciation (213,359) (197,296) Total computer equipment 35,859 45,919 Total property plant and equipment 40,378 48,228 Office Equipment Computer Equipment Balance at 1 July 2023 2,309 45,919 Additions 2,695 6,003 Disposals - - Depreciation expense (485) (16,063) Balance at 31 December 2023 4,519 35,859 Movement in carrying amounts Half Year Financial Report 2024 Felix Group Holdings Ltd ACN 159 858 509 18 Notes to the financial statements — For the half-year ended 31 December 2023 Note 7. Intangible assets Consolidated 31 Dec 2023 $ 30 Jun 2023 $ Technology platform development at cost 4,643,365 4,058,987 Less: Accumulated amortisation (3,396,144) (3,084,180) 1,247,221 974,807 Total intangible asset Movement in carrying amounts Balance at 1 July 2023 974,807 Additions 584,378 Impairment - Amortisation expense (311,964) Balance at 31 December 2023 1,247,221 Note 8. Right of use asset Consolidated 31 Dec 2023 $ 30 Jun 2023 $ Right of use asset 135,021 135,021 Less: Accumulated depreciation (56,259) (33,755) 78,762 101,266 Total right of use asset Movement in carrying amounts Balance at 1 July 2023 101,266 Additions - Impairment - Amortisation expense Balance at 31 December 2023 (22,504) 78,762 Lease liabilities are presented in the statement of financial position as follows: Consolidated Note 9. Lease Liabilities Half Year Financial Report 2024 31 Dec 2023 $ 30 Jun 2023 $ Current 46,417 43,217 Non-current 39,117 63,149 Total lease liability 85,534 106,366 Felix Group Holdings Ltd ACN 159 858 509 19 Notes to the financial statements — For the half-year ended 31 December 2023 Note 9. Lease Liabilities (cont.) Future minimum lease payments as at 31 December 2023 were as follows: Consolidated < 12 Months $ 1 to 5 Years $ Total $ Lease payments 52,520 40,560 93,080 Finance charges (6,103) (1,443) (7,546) Net present value 46,417 39,117 85,534 Future minimum lease payments as at 31 December 2022 were as follows: Consolidated < 12 Months $ 1 to 5 Years $ Total $ Lease payments 50,500 93,080 143,580 Finance charges (10,317) (7,546) (17,863) Net present value 40,183 85,534 125,717 Consolidated Note 10. Equity Ordinary shares - fully paid 31 Dec 2023 $ 30 Jun 2023 $ 52,940,938 49,414,406 Consolidated Ordinary shares - fully paid 31 Dec 2023 Shares 30 Jun 2023 Shares 204,499,713 156,719,713 Movements in ordinary share capital Date No. of Shares Balance $ 1 July 2023 156,719,713 - 49,414,406 14 August 2023 17,325,000 $0.08 1,386,000 1 September 2023 10,280,000 $0.08 822,400 Issue of shares for Placement (Tranche 2) 28 September 2023 20,175,000 $0.08 1,614,000 Fees associated with Placements and SPP - - - (295,868) 31 December 2023 204,499,713 - 52,940,938 Issue of shares for Placement (Tranche 1) Issue of shares for SPP Balance Half Year Financial Report 2024 Issue price Felix Group Holdings Ltd ACN 159 858 509 20 Notes to the financial statements — For the half-year ended 31 December 2023 Note 11. Equity - reserves Consolidated 31 Dec 2023 $ 30 Jun 2023 $ Foreign exchange (731) 9,994 Foreign exchange reserve total (731) 9,994 Senior management options 263,794 233,990 Director options 297,375 284,796 Consultant options 21,000 21,000 Share based payment reserve total 582,168 549,780 Closing Balance Reserves 581,437 549,780 Reserves: Share based payment: Note 12. Events after the reporting period Note 13. Contingent liabilities Half Year Financial Report 2024 There were no events after the reporting period. During the financial half-year there were no legal claims or other contingent liabilities brought against the group. Felix Group Holdings Ltd ACN 159 858 509 21 Notes to the financi