Consolidated statement of profit or loss and other comprehensive income

for the year ended 31 December 2020

 

 

 

		Year Ended 31 December 2020 ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000	Year Ended 31 December 2019 ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000
Continuing operations
Interest income		60	70
Foreign exchange gain/ (loss)		(17)	157
Administration expenses		(1,423)	(2,789)
Restructure and transaction related costs		-	(1,412)
Share of profit/(loss) of associate		(7,779)	(6,596)
Loss before tax	2	(9,159)	(10,570)
Income tax expense	8	-	-
Loss for the period from continuing operations		(9,159)	(10,570)
Discontinued operations
Loss for the year from discontinued operations	2	-	(2,620)
Loss for the year		(9,159)	(13,190)
Other comprehensive income, net of tax
Items that may be reclassified subsequently to profit or loss Exchange differences arising on the translation of foreign operations (nil tax impact)		(542)	(135)
Items that have been reclassified to profit or loss: Transfer from foreign exchange reserve on disposal of subsidiary		-	(891)
Total comprehensive income/ (loss) for the period		(9,701)	(14,216)
Loss attributable to:
Equity holders of the parent		(9,159)	(13,190)
Total comprehensive income attributable to:
Equity holders of the parent		(9,701)	(14,216)
Earnings/(Loss) per share:
From continuing and discontinued operations
-       Basic (cents per share)	12	(0.76)	(1.1)
-       Diluted (cents per share)	12	(0.76)	(1.1)
From continuing operations
-      Basic (cents per share)		(0.76)	(0.9)
-      Diluted (cents per share)		(0.76)	(0.9)

 

 

 

 

 

 

 

 

 

 

Notes to the Financial Statements are included on pages 21 to 43

 

 

Consolidated statement of financial position

as at 31 December 2020

	Note	31 December 2020 ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000	31 December 2019 ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000
Current Assets
Cash and cash equivalents	15	8,014	11,636
Other financial assets	6	-	4,239
Total Current Assets		8,014	15,875
Non-Current Assets
Investment in associates	7	23,585	25,463
Total Non-Current Assets		23,585	25,463
Total Assets		31,599	41,338
Current Liabilities
Trade and other payables		100	271
Total Current Liabilities		100	271
Non-Current Liabilities
Provisions		100	-
Total Liabilities		100	271
Net Assets		31,499	41,067
Equity
Issued capital	9	212,326	212,326
Reserves	10	4,513	4,922
Accumulated losses	11	(185,340)	(176,181)
Equity attributable to owners of the parent		31,499	41,067
Total Equity		31,499	41,067

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes to the Financial Statements are included on pages 21 to 43

 

 

Consolidated statement of changes in equity

for the year ended 31 December 2020

 

	Issued Capital ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000		Foreign Currency Translation Reserve ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000	Equity-settled benefits Reserve ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000	Accumulated Losses   ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000	Attributable to owners of the parent ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000	Non controlling Interest ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000	Total   ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000
Balance at 1 January 2020	212,326		879	4,043	(176,181)	41,067	-	41,067
Loss for the year	-		-	-	(9,159)	(9,159)	-	(9,159)
Exchange differences arising on translation of foreign operations	-		(542)	-	-	(542)	-	(542)
Total comprehensive income/(loss) for the period	-		(542)	-	(9,159)	(9,701)	-	(9,701)
Equity settled payments	-		-	133	-	133	-	133
Balance at 31 December 2020		212,326	337	4,176	(185,340)	31,499	-	31,499
Balance at 1 January 2019	212,326		1,905	3,748	(162,991)	54,988	120	55,108
Loss for the year	-		-	-	(13,190)	(13,190)	-	(13,190)
Exchange differences arising on translation of foreign operations	-		(135)	-	-	(135)	-	(135)
Transfer from foreign exchange reserve on disposal of subsidiary	-		(891)	-	-	(891)	-	(891)
Total comprehensive income/(loss) for the year	-		(1,026)	-	(13,190)	(14,216)	-	(14,216)
Derecognition of Non-Controlling Interest on disposal	-		-	-	-		(120)	(120)
Equity settled payments	-		-	295	-	295	-	295
Balance at 31 December 2019	212,326		879	4,043	(176,181)	41,067	-	41,067

 

 

 

 

 

 

 

 

Notes to the Financial Statements are included on pages 21 to 43

 

Consolidated statement of cash flows

for the year ended 31 December 2020

 

			Consolidated
	Note		Year Ended 31 December 2020 ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000	Year Ended 31 December 2019 ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000
Continuing and Discontinued Operations
Cash Flows from Operating Activities
Receipts from customers			-	7,198
Payments to suppliers and employees			(1,400)	(10,705)
Tax (paid)/ refund			-	(1,316)
Net cash used in operating activities	15		(1,400)	(4,823)
Cash Flows from Investing Activities
Investment in HomeSend joint venture Company			(6,090)	(6,480)
Payment for property, plant and equipment			-	(78)
Cash flow from disposal of subsidiaries, net of cash disposed			-	1,485
Repayments from/(advances to) HomeSend joint venture Company			4,124	(4,239)
Software development costs			-	(1,367)
Net cash used in investing activities			(1,966)	(10,679)
Cash Flows from Financing Activities
Payment of dividends			-	-
Net cash used in financing activities			-	-
Net Decrease in Cash and Cash Equivalents			(3,366)	(15,502)
Cash at the beginning of the period			11,636	27,451
Effects of exchange rate changes on the balance of cash held in foreign currencies			(256)	(313)
Cash and Cash Equivalents at the end of the period			8,014	11,636

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes to the Financial Statements are included on pages 21 to 43
 

Notes to the consolidated financial statements

 

1. SUMMARY OF ACCOUNTING POLICIES

 

Statement of compliance

 

The financial statements are general purpose financial statements which have been prepared in accordance with the Corporations Act 2001, Australian Accounting Standards and Interpretations, and comply with other requirements of the law.

 

The financial statements include the consolidated financial statements of the Group, comprising Wameja Limited (the Company/ Parent) and the entities it controlled at the end of, or during, the year. For the purposes of preparing the consolidated financial statements the Company is a for-profit entity. A description of the nature of the Group's operations and its principal activities are included in the directors' report, which is not part of the financial statements.

 

Compliance with Australian Accounting Standards ensures that the financial statements and notes of the Group comply with International Financial Reporting Standards ('IFRS') as issued by the International Accounting Standards Board ("IASB"). The financial statements were authorised for issue by the directors on the date of the signing of the directors' declaration.

 

Basis of preparation

 

The financial statements have been prepared on the historical cost basis, unless otherwise stated below. Historical cost is 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.

 

The Company is a Company of the kind referred to in ASIC Corporations (Rounding in Financial / Directors' Reports) Instrument 2016/191 dated 24 March 2016, and in accordance with this Corporations Instrument amounts in the directors' report and the financial statements are rounded off to the nearest thousand dollars, unless otherwise indicated.

 

The following significant accounting policies have been adopted in the preparation and presentation of the financial statements:

 

(a) Cash and cash equivalents

 

Cash and cash equivalents include cash on hand and in banks, deposits held at call with banks and financial institutions and investments in money market instruments with original maturities of three months or less from the date of acquisition.

 

(b) Financial assets

 

All recognised financial assets that are within the scope of AASB 9 are required to be measured subsequently at amortised cost or fair value on the basis of the entity's business model for managing the financial assets and the contractual cash flow characteristics of the financial assets.

 

Financial assets classified as held-to-maturity and loans and receivables under AASB 9 that were measured at amortised cost continue to be measured at amortised cost under AASB 9 as they are held within a business model to collect contractual cash flows and these cash flows consist solely of payments of principal and interest on the principal amount outstanding.

 

(c) Financial instruments issued by the Group

 

Debt and equity instruments

Debt and equity instruments are classified as either liabilities or as equity in accordance with the substance of the contractual arrangement. An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Group are recorded at the proceeds received, net of direct issue costs.

 

Notes to the consolidated financial statements

 

1. SUMMARY OF ACCOUNTING POLICIES (CONTINUED)

 

Transaction costs on the issue of equity instruments

Transaction costs arising on the issue of equity instruments are recognised directly in equity as a reduction of the proceeds of the equity instruments to which the costs relate. Transaction costs are the costs that are incurred directly in connection with the issue of those equity instruments and which would not have been incurred had those instruments not been issued.

 

Other financial liabilities

Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs, and are subsequently measured at amortised cost using the effective interest method, recognising interest expense on an effective yield basis.

 

Derecognition of financial liabilities

A financial liability is de-recognised when the obligation under the liability is discharged, cancelled, or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss and other comprehensive income.

 

Trade payables

Trade payables are initially measured at fair value including transaction costs and are subsequently measured at amortised cost.

 

(d) Goods and services tax

 

Revenues, expenses and assets are recognised net of the amount of goods and services tax ("GST"), except:

i.    where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of the cost of acquisition of an asset or as part of an item of expense; or

ii.    for receivables and payables which are recognised inclusive of GST.

 

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables.

 

Cash flows are included in the statement of cash flows on a gross basis. The GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified as operating cash flows.

 

(e) Foreign currencies

 

The individual financial statements of each group entity are presented in the currency of the primary economic environment in which the entity operates (its functional currency). For the purpose of the consolidated financial statements, the results and financial position of each group entity are expressed in Australian dollars, which is the functional currency of the Company and the presentation currency for the consolidated financial statements.

 

In preparing the financial statements of each individual group entity, transactions in currencies other than the entity's functional currency (foreign currencies) are recognised at the rates of exchange prevailing on the dates of the transactions. At the end of each reporting period, monetary items that are denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are translated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

 

 

Notes to the consolidated financial statements

 

1. SUMMARY OF ACCOUNTING POLICIES (CONTINUED)

 

Exchange differences on monetary items are recognised in profit or loss in the period in which they arise except for exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither planned nor likely to occur in the foreseeable future (therefore forming part of the net investment in the foreign operation), which are recognised initially in other comprehensive income/(loss) and reclassified from equity to profit or loss on repayment of the monetary items.

 

For the purpose of presenting these consolidated financial statements, the assets and liabilities of the Group's foreign operations are translated into Australian dollars using exchange rates prevailing at the end of the reporting period. Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuated significantly during that period, in which case the exchange rates at the dates of the transactions are used. Exchange differences arising, if any, are recognised in other comprehensive income/(loss) and accumulated in equity (and attributed to non-controlling interests as appropriate).

 

Goodwill and fair value adjustments to identifiable assets acquired and liabilities assumed through acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the rate of exchange prevailing at the end of each reporting period. Exchange differences arising are recognised in other comprehensive income/(loss).

 

(f) Basis of consolidation

 

The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries) (referred to as 'the Group' in these financial statements). Control is achieved when the Company:

 

•     has the 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 the returns.

 

The Group 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 results of subsidiaries acquired or disposed of during the year are included in consolidated profit or loss from the effective date of acquisition or up to the effective date of disposal, as appropriate.

 

Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by other members of the Group.

 

All intra-group transactions, balances, income and expenses are eliminated in full on consolidation.

 

Non-controlling interest in the net assets (excluding goodwill) of consolidated subsidiaries are identified separately from the Group's equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling interest's share of changes in equity since the date of the combination. Total comprehensive income is attributed to non-controlling interests even if this results in the non-controlling interests having a deficit balance.

 

When the Group loses control of a subsidiary, the gain or loss on disposal recognised in profit or loss is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill), less liabilities of the subsidiary and any non-controlling 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 or loss or transferred to another category of equity as required/permitted by applicable AASB Standards).

 

 

 

 

Notes to the consolidated financial statements

 

1. SUMMARY OF ACCOUNTING POLICIES (CONTINUED)

 

(g) Share-based payments

 

Equity-settled share-based payments are measured at fair value at the date of grant. Fair value is measured by use of either a Black-Scholes or binomial model. The expected life used in the model has been adjusted, based on management's best estimate, for the effects of non-transferability, exercise restrictions, and behavioural considerations.

 

The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Group's estimate of shares that will eventually vest.

 

(h) Investments in associates

 

An associate is an entity over which the group has significant influence and that is neither a subsidiary nor an interest in a joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.

 

The results and assets and liabilities of associates are incorporated in these financial statements using the equity method of accounting, except when the investment is classified as held for sale, in which case it is accounted for in accordance with AASB 5 Non-current Assets Held for Sale and Discontinued Operations. Under the equity method, investments in associates are carried in the consolidated statement of financial position at cost and adjusted for post-acquisition changes in the Group's share of the net assets of the associate, less any impairment in the value of individual investments.

 

Losses of an associate in excess of the group's interest in that associate (which includes any long-term interests that, in substance, form part of the group's net investment in the associate) are recognised only to the extent that the group has incurred legal or constructive obligations or made payments on behalf of the associate.

 

An investment in an associate is accounted for using the equity method from the date on which the investee becomes an associate. On acquisition of the investment in an associate, any excess of the cost of the investment over the Group's share of the net fair value of the identifiable assets and liabilities of the investee is recognised as goodwill, which is included within the carrying amount of the investment. Any excess of the Group's share of the net fair value of the identifiable assets and liabilities over the cost of the investment, after reassessment, is recognised immediately in profit or loss in the period in which the investment is acquired.

 

The requirements of AASB 9 Financial Instruments: Recognition and Measurement are applied to determine whether it is necessary to recognise any impairment loss with respect to the Group's investment in an associate. When necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment in accordance with AASB 136 Impairment of Assets as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs to sell) with its carrying amount, any impairment loss recognised forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognised in accordance with AASB 136 to the extent that the recoverable amount of the investment subsequently increases.

 

(i) Critical accounting judgments and key sources of estimation uncertainty

 

The directors evaluate estimates and judgments incorporated into the financial statements based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Group.

 

The following is the key assumption concerning the future, and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year:

 

 

 

Notes to the consolidated financial statements

 

 

1. SUMMARY OF ACCOUNTING POLICIES (CONTINUED)

 

Carrying value of equity accounted investment in HomeSend SCRL

 

The Group assesses impairment of investment in associate whenever the events or changes in circumstances indicate that the carrying amount of the investment may not be recoverable. Recoverable amount is measured at the higher of the fair value less cost of disposal or value in use.

 

Significant judgment is required in determining whether the recoverable amount of the equity accounted investment is in accordance with the relevant accounting standards.

 

In assessing the carrying value, the directors have considered the performance of HomeSend SCRL compared to the budget for the current financial year, the forecast future performance of the associate, and the indicative valuation based on the Scheme of Arrangement entered into by the Company on 10 September 2020.

 

Based on the directors' assessment there were no indication of impairment in the carrying value of the Group's investment in associate as at 31 December 2020.

 

(j) Going Concern

 

The consolidated statement of profit or loss and other comprehensive income for the financial year ended 31 December 2020 reflects a loss after tax of $9.159 million (2019: $13.19 million), and the consolidated statement of cash flows reflects net cash outflows from operations of $1.400 million (2019: $4.823 million). The cash and cash equivalents balance of $8.014 million (2019: $11.636 million).

 

The Directors have prepared the cash flow forecast for the period through to 31 March 2022. The cash flow forecast indicates that the Group will have sufficient funding to operate as a going concern during the forecast period, and on this basis the Directors have prepared the financial statements on the going concern basis.

 

(k) Segment Information

 

AASB 8 requires operating segments to be 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 segment and to assess its performance.

 

The Group operates in a single segment being the telecommunications software solutions business. Accordingly, all reported information in the financial report relates to this single segment.

 

(l) Issuance, Repurchased and repayment of Securities

 

During the year, the Company did not issue any shares (2019: nil).

 

 

Notes to the consolidated financial statements

 

 

1. SUMMARY OF ACCOUNTING POLICIES (CONTINUED)

 

(m) Income tax

 

Current tax

Current tax is calculated by reference to the amount of income taxes payable or recoverable in respect of the taxable profit or tax loss for the year. It is calculated using tax rates and tax laws that have been enacted or substantively enacted by the reporting date. Current tax for current and prior year is recognised as a liability (or asset) to the extent that it is unpaid (or refundable).

 

Deferred tax

Deferred tax is accounted for in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax base of those items.

 

In principle, deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are only recognised to the extent that it is probable that sufficient taxable amounts will be available against which deductible temporary differences or unused tax losses and tax offsets can be utilised.

 

However, deferred tax assets and liabilities are not recognised if the temporary differences giving rise to them arise from the initial recognition of assets and liabilities (other than as a result of a business combination) which affects neither taxable income nor accounting profit. Furthermore, a deferred tax liability is not recognised in relation to taxable temporary differences arising from goodwill.

 

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year(s) when the asset and liability giving rise to them are realised or settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by 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 reporting date, to recover or settle the carrying amount of its assets and liabilities.

 

Deferred tax assets and liabilities are offset 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.

 

The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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.

 

Current and deferred tax for the year

Current and deferred tax is recognised as an expense or income in profit or loss, except when it relates to items credited or debited to other comprehensive income (loss) or directly to equity, in which case the deferred tax is also recognised in other comprehensive income (loss) or directly in equity. Where it arises from the initial accounting for a business combination it is taken into account in the determination of goodwill.

 

 

 

Notes to the consolidated financial statements

 

 

1. SUMMARY OF ACCOUNTING POLICIES (CONTINUED)

 

(n) New, revised or amending Accounting Standards and Interpretations adopted:

 

In the current year, the Group has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (the AASB) that are relevant to its operations and effective for the current annual reporting period. The adoption of these new and revised Standards and Interpretations did not significantly affect the financial statements of the Group. 

 

AASB 2018-7 Amendments to Australian Accounting Standards - Definition of Material

These amendments are intended to address concerns that the wording in the definition of 'material' was different in the Conceptual Framework for Financial Reporting, AASB 101 Presentation of Financial Statements and AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors.

 

The amendments address these concerns by:

•     Replacing the term 'could influence' with 'could reasonably be expected to influence'.

•     Including the concept of 'obscuring information' alongside the concepts of 'omitting' and 'misstating' information in the definition of material.

•     Clarifying that the users to which the definition refers are the primary users of general purpose financial statements referred to in the Conceptual Framework.

•     Aligning the definition of material across IFRS Standards and other publications.

 

AASB 2019-1 Amendments to Australian Accounting Standards - References to the Conceptual Framework

 

Makes amendments to various Accounting Standards and other pronouncements to support the issue of the revised Conceptual Framework for Financial Reporting.

 

Some Accounting Standards and other pronouncements contain references to, or quotations from, the previous versions of the Conceptual Framework. This Standard updates some of these references and quotations so they refer to the Conceptual Framework issued by the AASB in June 2019, and also makes other amendments to clarify which version of the Conceptual Framework is referred to in particular documents.

 

AASB 2019-5 Amendments to Australian Accounting Standards - Disclosure of the Effect of New IFRS Standards Not Yet Issued in Australia

 

Amends AASB 1054 Australian Additional Disclosures to add a requirement for entities that intend to be compliant with IFRS standards to disclose the information required by AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors (specifically paragraphs 30 and 31) for the potential effect of each IFRS pronouncement that has not yet been issued by the AASB.

 

 

Notes to the consolidated financial statements

 

 

1. SUMMARY OF ACCOUNTING POLICIES (CONTINUED)

 

(o) Standards and Interpretations in issue not yet adopted 

 

At the date of authorisation of the financial statements, the Group has not applied the following new and revised Australian Accounting Standards, Interpretations and amendments that have been issued but are not yet effective:

 

Standard/Interpretation	Effective for annual reporting periods beginning on or after	Expected to be initially applied in the financial year ending
AASB 2020-1 Amendments to Australian Accounting Standards - Classification of Liabilities as Current or Non-current and AASB 2020-6 Amendments to Australian Accounting Standards - Classification of Liabilities as Current or Non-current - Deferral of Effective Date	1 January 2023	31 December 2023
AASB 2020-8 Amendments to Australian Accounting Standards - Interest Rate Benchmark Reform - Phase 2	1 January 2021	31 December 2021
AASB 2020-3 Amendments to Australian Accounting Standards - Annual Improvements 2018-2020 and Other Amendments	1 January 2022	31 December 2022

 

 

Notes to the consolidated financial statements

 

2	LOSS BEFORE TAX
		Consolidated
		Year Ended 31 December 2020 ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000	Year Ended 31 December 2019 ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000
	Loss before tax has been arrived at after charging the following:
	Restructure and transaction related costs (continuing operations)	-	1,412
	Employee benefit expense (continuing operations)	-	2,398
	Loss from discontinued operations	-	2,620

3. KEY MANAGEMENT PERSONNEL COMPENSATION

 

Key management personnel compensation policy

The Remuneration and Nominations Committee reviews the remuneration packages of all key management on an annual basis and makes recommendations to the Board. The Board's approach on Remuneration Policies is set out in the Remuneration Report which forms part of the Directors' Report.

 

The aggregate compensation made to key management personnel of the Group is set out as follows:

 

		Consolidated
		31 December 2020	31 December 2019
Short-term employee benefits		520,028	986,120
Post-employment benefits		2,014	20,478
Termination benefits		4,777	110,542
Share-based payments		133,651	293,128
		660,470	1,410,268

 

4. SHARE BASED PAYMENTS

 

Executive and Employee Equity-Settled Share Based Payments

 

The Group has an ownership-based remuneration scheme for executive directors, key management personnel and employees of the Group. In accordance with the provisions of the scheme, directors and employees may be granted options to acquire ordinary shares in the Company. The vesting of any share options is dependent on a period of service relative to the vesting dates, and in the case of performance options, it is also dependent on performance criteria.

 

 

 

Notes to the consolidated financial statements

 

4. SHARE BASED PAYMENTS (CONTINUED)

 

Under the Wameja Limited Employee Share Option Plan which was established 4 August 2000 to assist in the attraction, retention and motivation of employees and Directors of the Company and its related corporate bodies, as at 31 December 2020, certain key management personnel and employees (past and present) are entitled to purchase an aggregate of 17,575,000 (2019: 37,575,000) ordinary shares of the entity at an average exercise price of $0.21 (2019: $0.19) per ordinary share. The holders of such options do not have the right, by virtue of the option to participate in any share issue or interest issue of any other corporate body or scheme, and do not participate in any dividends declared. During the current year, no options had vested.

 

The following executive and employee share-based payment arrangements were in existence during the year:

 

Option Series	Grant Date	Expiry Date	Exercise Price $	Fair value at grant date	Number Vested at year end	Contractual life at year end (days)
Issued 07 Apr 2016 (i)	07-Apr-16	2021	$0.21	$0.0468	3,000,000	73
Issued 08 Aug 2016 (ii)	08-Aug-16	2021	$0.21	$0.0383	5,225,000	220
Issued 12th Apr 2017 (iii)	12-Apr-17	2022	$0.21	$0.0331	6,000,000	437
Issued 24th Nov 2017 (iv)	24-Nov-17	2022	$0.21	$0.0538	3,350,000	693
Issued 15th Jun 2018 (v)	15-Jun-18	2020	$0.16	$0.0268	15,000,000	-
Issued 5th Sep 2019 (vi)	05-Sep-19	2020	$0.16	$0.0059	5,000,000	-

 

In accordance with the terms of the Employee Share Option Plan:

 

(i)   Options issued in this series are executive options which vested on 14 March 2018 and expire on 14 March 2021.

(ii)   Options issued in this series are executive options which vested on 08 August 2018. 1,575,000 options expire on 14 March 2021 and the remaining 3,650,000 options expire on 08 August 2021.

(iii)  Options issued in this series are executive options which vested on 13 March 2019 and expire on 13 March 2022.

(iv)  Options issued in the series are executive options which vested on 24 November 2019 and expire on 24 November 2022.

(v)  and (vi) Performance options issued are executive options which vest on the 'testing date', subject to achievement of certain performance conditions and satisfaction of tenure conditions. The testing date is the earlier of 30 September 2020 or the date determined by the Board within 30 days following the occurrence of a change in control of the company or the sale of the substantial part of the business. These options expired on 30 September 2020 following their failure to vest under the terms and conditions.

 

 

 

 

Notes to the consolidated financial statements

 

4. SHARE BASED PAYMENTS (CONTINUED)

 

The following reconciles the outstanding share options granted under the executive share option plan at the beginning and the end of the financial year:

 

	31 December 2020			31 December 2019
	Number of Options	Weighted average exercise price $		Number of Options	Weighted average exercise price $
Balance at the beginning of the financial year	37,575,000	0.19		32,575,000	0.219
Granted during the year	-	-		5,000,000	0.16
Expired/ lapsed during the year	(20,000,000)	0.16		-	-
Balance at the end of the financial year	17,575,000	0.21		37,575,000	0.19
Exercisable at the end of the financial year	17,575,000			17,575,000

 

5. REMUNERATION OF AUDITORS

 

		Consolidated
		31 December 2020	31 December 2019
Auditor of the Parent Entity
Auditing or review of the financial report		112,500	162,500
		112,500	162,500

 

Other Auditors
Auditing or review of the financial report		50,389	-
Other services		132,410	-
		182,799	-

 

The auditor of Wameja Limited is Deloitte Touche Tohmatsu in Australia. Other auditors are non-affiliated firms of Deloitte Touche Tohmatsu.

 

Fees paid to other auditors are charged in respective foreign currencies and are subject to exchange rate fluctuations

 

6. OTHER FINANCIAL ASSETS

		Consolidated
		31 December 2020 ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000	31 December 2019 ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000
Advances to HomeSend SCRL (i)		-	4,239

 

(i)  During the 2019 financial year, the Company entered into a loan facility agreement with HomeSend SCRL for the sole permitted purpose of funding the pre- payment timing gaps in HomeSend's settlement model (the "Facility"). Mastercard had entered into a similar loan facility agreement with HomeSend SCRL. The Facility was for a total of $31.16 million (€20 million) between the Company and Mastercard with the Company providing approximately $11.57 million (€7.1 million) in proportion to its shareholding in HomeSend SCRL.

 

The Facility was a revolving credit line providing HomeSend the ability to draw and re-draw the funds as required, with an obligation to return amounts drawn if not required, based on HomeSend's forecasts. The Facility was unsecured and interest was payable quarterly at 1.916% per annum on the amount drawn. There was no establishment or commitment fee. The Facility was fully repaid on 12 August 2020.

 

 

Notes to the consolidated financial statements

 

7. INVESTMENT IN ASSOCIATES

 

Details of the material investment in associates at the end of the reporting period are as follows:

 

Name of associate	Principal activity	Place of incorporation and principal place of business	Proportion of ownership interest and voting rights held by the Group
			31 December 2020	31 December 2019
HomeSend SRCL (a)	Provision of international mobile money services	Brussels, Belgium	35.68%	35.68%

 

a)    HomeSend SRCL was formed on 3 April 2014.  The Directors have determined that the Group exercises significant influence over HomeSend SRCL by virtue of its 35.68% voting power in shareholders meetings and its contractual right to appoint two out of six directors to the board of Directors of that Company. 

 

Reconciliation of the above summarised financial information to the carrying amount of the interest in HomeSend SCRL recognized in the consolidated financial statements:

	31 December 2020		31 December 2019
Net assets of the associate ( ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000)	66,103		71,364
Proportion of the Group's ownership interest in HomeSend SCRL (%)	35.68%		35.68%
Closing balance ( ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000)	23,585		25,463

 

The associate is accounted for using the equity method in these condensed consolidated financial statements.

 

b)    Reconciliation of the carrying amount of the investment in associate:

	31 December 2020 $000		31 December 2019 $000
Opening balance	25,463		25,791
Investment in associate	6,090		6,480
Share of current period loss of the associate	(7,779)		(6,596)
Effects of foreign currency exchange movements	(189)		212
Closing balance	23,585		25,463

 

During the year, the Company contributed €3.57 million (A$6.090 million) towards the total capital raise.

 

Summarised financial information in respect of HomeSend SCRL is set out below. The summarised financial information below represents amounts shown in the associate's financial statements prepared in accordance with Belgium GAAP, adjusted to align with the Australian Accounting Standards and to reflect other required notional equity accounting adjustments.

 

HomeSend SCRL	31 December 2020 $000		31 December 2019 $000
Current assets	73,683		44,067
Non-current assets (i)	63,998		63,463
Current liabilities	(71,578)		(36,166)
Net assets	66,103		71,364

 

(i) Includes notional intangible assets arising on acquisition.  

Notes to the consolidated financial statements

 

7. INVESTMENT IN ASSOCIATES (CONTINUED)

 

HomeSend SCRL	31 December 2020 $000		31 December 2019 $000
Revenue	12,238		6,841
Loss from continuing operations	(21,803)		(18,486)
Loss for the year	(21,803)		(18,486)
Total comprehensive loss for the year	(21,803)		(18,486)

 

8. INCOME TAXES      

 

Income tax recognized in profit/(loss)	31 December 2020 ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000	31 December 2019 ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000
The prima facie income tax expense on pre-tax accounting profit/(loss) from operations reconciles to the income tax (benefit)/expense in the financial statements as follows:
Loss from operations	(9,159)	(13,190)
Income tax benefit calculated at 27.5% (2019: 27.5%)	(2,519)	(3,627)
Non-deductible expenses	-	863
Deferred tax assets not recognised	2,519	2,764
	-	-

 

The tax rate used in the above reconciliation is the corporate tax rate of 27.5% payable by Australian corporate entities on taxable profits under Australian tax law. No income tax was recognised directly in equity or in other comprehensive income (loss) during the financial year.

 

9. ISSUED CAPITAL

 

		31 December 2020 ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000	31 December 2019 ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000
1,210,850,662 fully paid ordinary shares (2019: 1,210,850,662)		212,326	212,326

 

	31 December 2020			31 December 2019
	No. '000	##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000		No. '000	##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000
Fully Paid Ordinary Shares
Balance at the beginning of the financial year	1,210,851	212,326		1,210,851	212,326
Balance at the end of the financial year	1,210,851	212,326		1,210,851	212,326

 

Fully paid ordinary shares carry one vote per share and carry the right to dividends.

 

Changes to the then Corporations Law abolished the authorised capital and par value concept in relation to share capital from 1 July 1998. Therefore, the Company does not have a limited amount of authorised capital and issued shares do not have a par value.

 

Share Options

All shares options have been cancelled. Details of the executive and employee share option plan are contained in Note 4 to the financial statements.

 

 

 

Notes to the consolidated financial statements

 

10. RESERVES

		Consolidated
		31 December 2020 ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000	31 December 2019 ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000
Employee equity-settled benefit (a)		4,176	4,043
Foreign currency translation (b)		337	879
		4,513	4,922

 

(a) Employee equity-settled benefit

Balance at beginning of financial year		4,043	3,748
Employee equity-settled benefits (i)		133	295
Balance at the end of the financial year		4,176	4,043

 

(i) The employee equity-settled benefits reserve arises on the grant of share options to key management personnel and employees under the executive and employee share option plan. Further information about equity-settled benefits is contained in Note 4 to the financial statements.

 

(b) Foreign currency translation

Balance at beginning of financial year		879	1,905
Translation of foreign operations		(542)	(135)
Transfer from foreign exchange reserve on disposal of subsidiary		-	(891)
Balance at the end of the financial year		337	879

 

11. ACCUMULATED LOSSES

	Consolidated
	31 December 2020 ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000	31 December 2019 ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000
Balance at beginning of the financial year	(176,181)	(162,991)
Loss for the year attributable to equity holders of the parent	(9,159)	(13,190)
Balance at end of financial year	(185,340)	(176,181)

 

 

 

Notes to the consolidated financial statements

 

12. EARNINGS PER SHARE

	Consolidated
	31 December 2020		31 December 2019
Basic earnings per share (cents per share)		(0.76)		(1.1)
Diluted earnings per share (cents per share)		(0.76)		(1.1)

 

Basic earnings per share
The earnings and weighted average number of ordinary shares used in the calculation of basic earnings per share are as follows:
		31 December 2020 ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000	31 December 2019 ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000
Earnings - being the (loss)/profit for the year attributable to equity holders of the parent	(9,159)		(13,190)
	31 December 2020 No'000		31 December 2019 No'000
Weighted average number of ordinary shares	1,210,851		1,210,851

 

Diluted earnings per share
The earnings and weighted average number of ordinary and potential ordinary shares used in the calculation of diluted earnings per share are as follows:
		31 December 2020 ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000	31 December 2019 ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000
Earnings - being the (loss)/profit for the year attributable to equity holders of the parent	(9,159)		(13,190)
	31 December 2020 No'000		31 December 2019 No'000
Weighted average number of ordinary shares and potential ordinary shares (a)	1,210,851		1,210,851

 

(a) Weighted average numbers of ordinary shares and potential ordinary shares used in the calculation of diluted earnings per share reconciles to the weighted average number of ordinary shares used in the calculation of basic earnings per share as follows:

Weighted average number of ordinary shares and potential ordinary shares used in the calculation of basis and diluted (loss)/earnings per share

1,210,851

1,210,851

 

There are no instruments in the current or prior year that are considered dilutive.

 

 

Notes to the consolidated financial statements

 

13. SUBSIDIARIES

 

Details of the Group's material subsidiaries at the end of the reporting period are as follows:

		Ownership Interest and voting power
	COUNTRY OF INCORPORATION	31 December 2020         %	31 December 2019         %
Parent Entity	Australia
Wameja Limited
Material Subsidiary
Wameja Investments Pty Limited	Australia	100	100
Wameja UK Limited	United Kingdom	100	100
Wameja Singapore Ltd	Singapore	100	100
WamejaGlobal	Netherlands	100	100
Wameja Hongkong	Hong Kong	100	100

 

The Group's principal operating and administrative activities are carried out by Wameja Limited which is based in Australia. The Group's investment in its associate HomeSend SCRL is held by Wameja Limited (2019: Wameja Investments Pty Limited).

 

14. RELATED PARTY DISCLOSURES

 

a)   Equity Interests in Related Parties

Equity Interests in Controlled Entities

Details of the percentage of ordinary shares held in material subsidiaries are disclosed in Note 13 to the financial statements.

 

b)   Key management personnel compensation

Details of key management personnel compensation are disclosed in Note 3 to the financial statements.

 

c)   Key management personnel equity and option holdings

Information on key management personnel interests in shares and options is detailed in the Directors' Report.

 

d)   Other related party transactions

		Consolidated
		Year Ended 31 December 2020 $	Year Ended 31 December 2019 $
	Mr Rowe's Director's Fees, as detailed in the Directors' Report, are paid to him as a sole legal practitioner	251,303	124,630
	Mr Baldwin's Director's Fees, as detailed in the Directors' Report, are paid to his private company	43,875	62,791
	Mr Brooke's Director's Fees, as detailed in the Directors' Report, are paid to his private company	35,097	44,095
	Mr Conoley's Director's Fees, as detailed in the Directors' Report, are paid to him	233,556	399,776
	Mr Hume's Director's Fees, as detailed in the Directors' Report, are paid to his company. (i)	96,639	511,480

 

(i) Prior year amount includes remuneration as an employee to Mr. Hume.
 

Notes to the consolidated financial statements

 

14. RELATED PARTY DISCLOSURES (CONTINUED)

 

e)   Parent Entities

The parent and ultimate parent entity in the Group is Wameja Limited.

 

15. NOTES TO THE STATEMENT OF CASH FLOWS

 

		Consolidated
		Year Ended 31 December 2020 ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000		Year Ended 31 December 2019 ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000
a) Reconciliation of cash
For the purposes of the statement of cash flows, cash and cash equivalents includes cash on hand and in banks and investments in money market instruments.   Cash at the end of the financial year as shown in the statement of cash flows is reconciled to the related items in the statement of financial position as follows:
Cash and cash equivalents		8,014		11,636
	b) Reconciliation of loss for the year to net cash flows from operating activities
	Loss for the year		(9,159)	(13,190)
	Amortisation of non-current assets		-	1,367
	Foreign exchange (gain)/loss, including changes in foreign currency net assets and liabilities and other non-cash items		18	(1,043)
	Equity settled share-based payments		133	295
	Share of loss of associate		7,779	6,596
	Impairment charge on re-measurement of disposal group to fair value less cost to sell		-	2,814
	Movements
	Decrease in trade receivables and contract assets		-	382
	Decrease in inventories		-	28
	Decrease in current tax assets		-	37
	Decrease in other current assets		-	322
	Decrease in deferred tax assets		-	(276)
	Decrease in trade and other payables, and provisions		(171)	(1,324)
	(Decrease)/increase in current tax payables		-	(1,046)
	Increase/(decrease) in contract liabilities		-	215
	Net cash used in operating activities		(1,400)	(4,823)

 

 

Notes to the consolidated financial statements

 

16. FINANCIAL INSTRUMENTS

 

a) Significant Accounting Policies

Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which revenues and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in Note 1 to the financial statements.

b) Capital Risk Management

The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance.   The capital structure of the Group includes cash and cash equivalents and equity attributable to equity holders of the parent, comprising issued capital, reserves and retained earnings. Operating cash flows is used to maintain and expand the Group's assets as well as to pay for operating expenses.

c) Financial Risk Management Objectives

The Group's activities expose it to a variety of financial risks: market risk (including currency and interest rate risk), credit risk and liquidity risk. The Group's overall risk management program focuses on the unpredictability of financial and exchange rate markets and seeks to minimise potential adverse effects on the Group's performance. A risk management framework, including the policy on use of financial derivatives is governed by the Board of Directors. The Group does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

d) Market Risk

The Group's activities expose it primarily to the financial risks of changes in foreign currency exchange rates and changes in market interest rates. There has been no change to the Group's exposure to market risks or the manner in which it manages and measures the risks from the previous period.

e) Foreign Currency Risk Management

The Group undertakes certain transactions denominated in foreign currencies that are different to the functional currency of the respective entities undertaking the transactions, hence exposures to exchange rate fluctuations arise which are recorded in profit or loss. The group may use foreign currency exchange contracts to hedge these risks. No such contracts were entered into during the current year (2019: nil).   The material carrying amount of the Group's foreign currency denominated monetary assets and monetary liabilities at the reporting date that are denominated in a currency that is different to the functional currency of the respective entities holding the monetary assets and liabilities are as follows:

Assets

Liabilities

31 December 2020

31 December 2019

31 December 2020

31 December 2019

##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000

##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000

##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000

##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000

External Group Exposure

US Dollars

-

-

-

-

Euro (Functional currency - Australian Dollars)

6,624

15,706

-

-

UK Pounds (Functional currency - Australian Dollars)

962

52

-

-

 

 

 

Notes to the condensed consolidated financial statements

 

16. FINANCIAL INSTRUMENTS (CONTINUED)

 

	Foreign currency sensitivity analysis
	The following table details the Group's sensitivity to a 10% increase and decrease in the functional currency against the relevant foreign currencies, which represents management's assessment of the possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items (arising from monetary assets and liabilities held at balance date in a currency different to the functional currency of the respective entities holding the assets or liabilities) and adjusts their translation at year end for a 10% change in foreign currency rates.
		Profit or loss
		Consolidated
	Currency	31 December 2020	31 December 2019
		##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000	##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000
	External Group Exposure
	US Dollars	-	-
	Euro	662	1,571
	UK Pounds	96	-
	The sensitivity includes external receivables and payables as well as inter-company balances with foreign operations within the Group where the denomination of the receivable or payable is in a currency other than the functional currency of the respective entity and the balance is expected to be repaid in the foreseeable future.   For assets, a positive number indicates an increase in profit with the functional currency weakening against the respective currency. For a strengthening of the functional currency against the respective currency there would be an equal and opposite impact on the profit, and the amounts above would be negative. For liabilities, the opposite would apply.

 

	In management's opinion, the above sensitivity analysis reflects the foreign currency risk changes as at reporting date. In addition, the Group includes certain subsidiaries whose functional currencies are different to the Group's presentation currency. As stated in the Group's Accounting Policies Note 1(f), on consolidation the assets and liabilities of these entities are translated into Australian dollars at exchange rates prevailing on the balance date. The income and expenses of these entities are translated at the average exchange rates for the year. Exchange differences arising are classified as equity and are transferred to a foreign exchange translation reserve. The main operating entity outside of Australia is based in France. The Group's future reported profits could therefore be impacted by changes in rates of exchange between the Australian Dollar and the Euro.
	f) Interest Rate Risk Management
	The Group's exposure to interest rate risk at 31 December 2020 is in respect of interest generated on deposits balances invested during the course of the year. Cash deposits yielded a weighted average interest rate of 0.001% for the financial year (2019: 0.001%).
	Interest rate sensitivity analysis
	The Group's net sensitivity to interest rate movements is not considered to be material to the Group.
	g) Liquidity Risk Management
	Ultimate responsibility for liquidity risk management rests with the board of directors, who have built an appropriate liquidity risk management framework for the management of the Group's short, medium and long-term funding and liquidity management requirements. The Group manages liquidity risk by maintaining adequate cash reserves and by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.

 

 

 

Notes to the condensed consolidated financial statements

 

16. FINANCIAL INSTRUMENTS (CONTINUED)

 

	Liquidity and interest risk tables
	The following tables detail the Group's remaining contractual maturity for its non-derivative financial liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group can be required to pay. The table includes both principal and interest cash flows.
				Less than 1 month ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000			1-3 months ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000			3 months - 1 year ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000				1-5 years      ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000
Consolidated
31 December 2020
Other payables - Non-interest bearing				100			-			-				-
Total				100			-			-				-
31 December 2019
Other payables - Non-interest bearing				271			-			-				-
Total				271			-			-				-
The following tables detail the Group's expected maturity for its non-derivative financial assets. The tables have been drawn up based on the undiscounted contractual maturities of the financial assets including interest that will be earned on those assets except where the Group anticipates that the cash flow will occur in a different period based on the earliest date on which the Group can expect to receive payment. The table includes both interest and principal cash flows.
		Weighted average effective interest rate %	Not Overdue		Less than 1 month ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000		1-3 months ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000		3 months - 1 year ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000				1-5 years   ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000	5+ years ##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000
Consolidated
31 December 2020
Cash and cash equivalents		0.001%	-		8,014		-		-				-	-
Total			-		8,014		-		-				-	-
31 December 2019
Cash and cash equivalents		0.001%	-		11,636		-		-				-	-
Other financial assets		1.916%	-		-		-		4,239				-	-
Total			-		11,636		-		4,239				-	-

 

 

 

Notes to the condensed consolidated financial statements

 

16. FINANCIAL INSTRUMENTS (CONTINUED)

 

h) Credit Risk Management
	Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. The Group has adopted the policy of dealing with creditworthy counterparties, as a means of mitigating the risk of financial loss from defaults. The Group does not have any financial asset impaired by credit risk.

 

(i)       Fair value of the Group's financial assets and financial liabilities that are measured at fair value on a recurring basis

 

None of the Group's other financial assets and financial liabilities are measured at fair value as at
31 December 2020 (31 December 2019: nil).

 

(ii)      Fair value of financial assets and financial liabilities that are not measured at fair value on a recurring basis (but fair value disclosures are required)

 

The directors consider that the carrying amounts of the financial assets and financial liabilities recognised in the consolidated financial statements approximate their fair values.

 

17. PARENT ENTITY INFORMATION

	(a) Financial position	31 December 2020	31 December 2019
		##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000	##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000
	Assets
	Current assets	8,014	120
	Non-current assets	23,585	41,218
	Total assets	31,599	41,338
	Liabilities
	Current liabilities	(100)	(271)
	Total liabilities	(100)	(271)
	Net Assets	31,499	41,067
	Equity
	Issued capital	212,326	212,326
	Accumulated losses	(185,003)	(175,302)
	Reserves
	Equity-settled benefits	4,176	4,043
	Foreign currency translation	-	-
	Total equity	31,499	41,067
	(b) Financial performance	31 December 2020	31 December 2019
		##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000	##PRELOADED_STATE## ##REACT_QUERY_STATE## ##CHUNKS## 000
	Loss for the period	(10,038)	(14,422)
	Total comprehensive loss	(10,038)	(14,422)

 

 

 

Notes to the condensed consolidated financial statements

 

17. PARENT ENTITY INFORMATION (CONTINUED)

 

       (c) Guarantees entered into by the parent entity

 

Wameja Limited has not provided any guarantees in relation to any of its subsidiaries.

      

       (d) Contingent liabilities of the parent entity

 

There are no contingent liabilities for the parent entity.

 

 (e) Commitments for the acquisition of property, plant and equipment by the parent entity

 

There are no material commitments for the acquisition of property, plant and equipment by the parent entity.

 

18. CONTINGENT LIABILITIES

 

I.          Notices of Potential Claim

In July 2019, Wameja Limited ("Wameja" or the "Company") sold all the issued capital of eServGlobal Holdings SAS and its subsidiaries ("eServGlobal") to Seamless Distribution Systems AB ("Seamless").  The sale comprised the effective sale of Wameja's operating business.  The sale and purchase agreement ("SPA") included an indemnity under which Wameja agreed to indemnify and hold Seamless harmless against any direct loss, damage or liability related to the lack of renewed licences for eServGlobal's use of a specific third party's intellectual property ("the Indemnity").  The third party is the provider of software embedded in all deployments of eServGlobal's "Paymobile" platform, eServGlobal's primary product. 

 

At the end of September 2020, Wameja received a notification of potential claim under the Indemnity from Seamless regarding an issue that had arisen between Botswana Telecommunications ("BTC") (an eServGlobal customer) and the third-party software supplier.  Seamless subsequently issued another notice with their estimation of the exposure under the Indemnity across BTC and other eServGlobal clients.  

 

An audit by the third-party software supplier of their intellectual property embedded in the Paymobile platform utilised by BTC commenced subsequent to year end. Based on the directors' assessment, the potential for a legitimate material claim under the indemnity in the SPA is unable to be determined at the date of this report.

 

At the date of this financial report, the directors consider there to be no present obligation or material exposure under the Indemnity on the basis that:

·      there has been no claim by the third-party software supplier against eServGlobal or Seamless arising from the non - renewal of licences, or any other matter, and

·      Seamless has not particularised the basis under the SPA upon which it believes that there is a potential claim under the Indemnity.

 

No provision has been recognised in the financial statements as at 31 December 2020.

 

II.         Warranty claim

On 3 July 2020, the company received notification of a purported warranty claim from Seamless in relation to a French employee of eServGlobal SAS whose employment was terminated subsequent to completion of the sale of eServGlobal Holdings SAS to Seamless. The notification sought to claim €519,967 ($843,007) under the warranties contained within the SPA, being the amount including taxes, that the employee was seeking from eServGlobal SAS for compensation for loss of employment. 

 

Notes to the condensed consolidated financial statements

 

18. CONTINGENT LIABILITIES (CONTINUED)

 

The directors have assessed and considered the purported warranty claim to be without merit and have advised Seamless as such, and rejected the suggestion that the liability to the employee is subject to the warranties in the SPA.

 

At the date of this financial report, there has been no further correspondence from Seamless on this matter and the directors maintain their position that the purported warranty claim is without merit.

 

19. SUBSEQUENT EVENTS

 

The impact of the Coronavirus (COVID 19) pandemic is ongoing and while COVID‑19 has been financially neutral for the Group up to 31 December 2020, it is not practicable to estimate the extent of the potential impact, positive or negative, after the reporting date. The situation is rapidly developing and is dependent on measures imposed by the governments and authorities around the world, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus that may be provided.

 

Based on the information available to the directors as at the date of the financial statements, there are no significant factors identified which would impact on the carrying value of the Group's investment in associate due to COVID-19. However, the directors consider that prolonged general economic impacts arising from COVID-19 may have a negative impact on the operations of the Group's associate. This in turn may impact the recoverability of the Group's carrying value of the investment in associate going forward.

 

On 18 March 2021, Wameja Limited subscribed for a further €1,784,118 of shares in HomeSend SCRL. The equity contribution is part of a €6,000,000 capital raise with Mastercard agreeing to contribute an additional €1,000,000 over and above its proportionate interest in HomeSend SCRL. The funds from the capital raise are to be used to support the operational expenses of the HomeSend 2021 business plan and its minimum equity requirements into H2 2021.

 

No other matter or circumstance has occurred subsequent to year end that has significantly affected, or may significantly affect, the operations of the Company, the results of those operations or the state of affairs of the entity in subsequent financial years.

 

20. ADDITIONAL COMPANY INFORMATION

 

Wameja Limited is a listed public company, incorporated in Australia and operating in Australia and Europe.

 

Registered Office

c/o Simpsons Solicitors

Level 2, Pier 8/9

23 Hickson Road

Millers Point Sydney NSW 2000

Australia