Kyckr : 1HFY22 Appendix 4D and Interim Report

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Kyckr Limited

Appendix 4D

Half-year report

	1. Company details
	Name of entity:	Kyckr Limited
	ABN:	38 609 323 257
only	For the half-year ended 31 December 2021
	Reporting period:
	Previous period:	For the half-year ended 31 December 2020
	2. Results for announcement to the market
						$
	Revenues from ordinary activities		up	39.0%	to	1,759,671
use
	Loss from ordinary activities after tax attributable to the owners of Kyckr
	Limited		up	11.3%	to	(3,063,894)
	Lo for the half-year attributable to the owners of Kyckr Limited	up	11.3%	to	(3,063,894)
	Dividends

There were no dividends paid, recommended or declared during the current financial period.

Comments

personalThe oss for the consolidated entity after providing for income tax amounted to $3,063,894 (31 December 2020: $2,753,525). Refer to the Review of operations in the Directors' report for further detail.

3. Net tangible assets

Net tangible assets per ordinary security

4. Control gained over entities Not applicable.

5. Loss of control over entities ForNot applicable.

6. Dividends

Current period

There were no dividends paid, recommended or declared during the current financial period.

Previous period

There were no dividends paid, recommended or declared during the previous financial period.

7. Dividend reinvestment plans

Not applicable.

Kyckr Limited

Appendix 4D

Half-year report

8. Details of associates and joint venture entities Not applicable.

only9. Foreign entities

Details of origin of accounting standards used in compiling the report:

Not applicable.

10. Audit qualification or review

D tails 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.

	11. Attachments
use
	Details of attachments (if any):
	The Interim Report of Kyckr Limited for the half-year ended 31 December 2021 is attached.
	12. Signed
	Signed ___________________________	Date: 24 February 2022
	Rajarshi Ray
personalFor
	Chairman

Sydney

onlyKyckr Limited

ABN 38 609 323 257

useInterim Report - 31 December 2021 personalFor

Kyckr Limited Directors' report 31 December 2021

The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'consolidated entity' or 'Group') consisting of Kyckr Limited (referred to hereafter as the 'company' or 'parent entity') and the entities it controlled at the end of, or during, the half-year ended 31 December 2021.

onlyDirectors

The following persons were directors of Kyckr Limited during the whole of the financial half-year and up to the date of this report, unless otherwise stated:

Mr Rajarshi Ray - Chairman (appointed Chair on 18 August 2021)

Ms Karina Kwan - Non-Executive Director

Mr George Venardos - Non-Executive Director (appointed on 18 August 2021)

Mr Benny Higgins - Non-Executive Chairman (resigned on 18 August 2021)

Ms Jacqueline Kilgour - Non-Executive Director (resigned on 18 August 2021)

usePrincipal activities

The principal activities of the Group are the provision of business data and software solutions for "Know Your Business" purposes. These solutions support critical compliance, regulatory and business-related processes. They protect against and di rupt money laundering, terrorism finance; modern-day slavery; fraud; and tax evasion.

Kyckr's platform is connected to over 200 regulated primary sources in over 120 countries, providing real-time company registry information for over 170 million businesses globally.

Dividends

There were no dividends paid, recommended or declared during the current or previous financial half-year.personalReview of operations

In the period, the Group continued to successfully execute its transformation from a provider of PDF registry filings to a value- added business information services organisation. This is in line with its mission to provide trusted, structured business i formation - directly to end clients or embedded in partner platforms - to support critical compliance-focused and business- related workflows.

The realisation of the benefits associated with this transition to a SaaS model were seen in Annualised Recurring Revenues growing to $2.292m on 31 December 2021. This was up 206% on the prior corresponding period ('PCP'). The growth came from both existing customers and partners, with the consistent trend of 100% customer/partner retention continuing.

The Group is well-positioned, with a cash balance of $10.555m at 31 December 2021. This follows a successful share placement to institutional, sophisticated and professional investors and an offer to existing shareholders, which was eight tim s oversubscribed. These funds continue to be carefully deployed in sales, technology and product development.

EBITDA disclosures have been added as Kyckr believes they provide useful information for understanding its underlying erformance. While EBITDA ('earnings before interest, taxation, depreciation and amortisation') is a financial measure not rescribed by Australian Accounting Standards ('AAS'), it does represent the profit under AAS, adjusted for specific non-

cash items, interest revenue, finance costs, tax expenses and significant items. For

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Kyckr Limited Directors' report 31 December 2021

Operating revenue

onlyDirect costs and consumables used Other operating costs Share-based payments expenses Foreign exchange gain/(loss)

Underlying EBITDA

G vernment grants

One-off data costs for IT development

31 Dec 2021	31 Dec 2020	Change	Change
$	$	$	%
1,754,554	1,237,783	516,771	42%
(792,383)	(646,976)	(145,407)	22%
(3,499,596)	(3,190,621)	(308,975)	10%
(94,270)	(82,672)	(11,598)	14%
(16,131)	4,957	(21,088)	N/A
(2,647,826)	(2,677,529)	29,703	(1%)
-	46,338	(46,338)	N/A
(300,000)	-	(300,000)	N/A

EBITDA	(2,947,826)	(2,631,191)	(316,635)	12%
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add: Interest revenue	5,117	28,244	(23,127)	(82%)
l ss: Depreciation and amortisation	(121,185)	(149,211)	28,026	(19%)
less: Finance costs	-	(1,367)	1,367	N/A
Loss after tax	(3,063,894)	(2,753,525)	(310,369)	11%

The Group's revenue was $1,754,554, up 42% on PCP, driven by enterprise and partner revenues of $1,678,189, up 49% on the PCP. Narrow-margin online revenues continue to be managed down. Direct costs and consumables used increased

by 22%, significantly less than the 42% revenue growth, as the Group drove economies of scale and optimised its sales mix. personalOther operating costs increased by $308,975, up 10% on the PCP, as a result of the acceleration of targeted investment to

drive future revenue growth and cost out, including:

● development and delivery of a ultimate beneficial ownership service (UBO Verify) beyond the current minimum viable product;

● creation of a new Kyckr Enterprise Portal. All existing customers are expected to be migrated, which will provide noticeable improvements in performance, speed and functionality;

● enhanced API capability to facilitate faster integration with technology partners and provide an enhanced user experience; and

● new pricing model enabling partners to expand quickly and deliver increased revenues to Kyckr.

This accelerated investment, including record spending on IT development, is driving current and future revenue growth. Given this level of incremental investment, there has been a parallel focus on cost management in other areas of the business. As a result, the Group reported a consolidated underlying EBITDA loss of $2,647,826 consistent with the PCP.

Significant changes in the state of affairs

During the first half of the 2022 financial year, the company issued 193,749,987 ordinary shares for $0.04 per share to institutional, sophisticated and professional investors and through an offer to existing shareholders. The total proceeds from the issuance of these securities amounted to $7,749,999 before transaction costs.

ForThe e were no other significant changes in the state of affairs of the consolidated entity during the financial half-year.Matters subsequent to the end of the financial half-year

On 20 January 2022, 6,140,350 unlisted performance rights were granted to employees under the Kyckr Limited Long Term Incentive Plan. The performance rights are to vest in three equal instalments. Each performance right will convert into one fully paid ordinary share in the company subject to continued employment at the vesting dates and the achievement of the respective performance hurdles. The performance hurdles applied to the grant were revenue and gross margin targets for financial years ending 30 June 2022, 2023 and 2024.

The consequences of the Coronavirus (COVID-19) pandemic are continuing to be felt around the world, and its impact on the consolidated entity, if any, has been reflected in its published results to date. Whilst it would appear that control measures and related government policies, including the roll out of the vaccine, have started to mitigate the risks caused by COVID- 19, it is not possible at this time to state that the pandemic will not subsequently impact the consolidated entity's operations going forward. The consolidated entity now has experience in the swift implementation of business continuation processes should future lockdowns of the population occur, and these processes continue to evolve to minimise any operational disruption. Management continues to monitor the situation both locally and internationally.

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