For personal use only
Interim Financial Report
For the half-year ended
31 December 2020
Jaxsta Limited ABN 15 106 513 580
For personal use only
Credit where credit is due
Photo credit: Fatoba Tolulope Ifemide
Table of Contents
For personal use only
Half Year 2021 Highlights | 1 |
Directors' Report | 2 |
Auditor's Independence Declaration | 6 |
Consolidated Financial Statements | 7 |
Consolidated Statement of Profit or Loss and Other Comprehensive Income | 8 |
Consolidated Statement of Financial Position | 9 |
Consolidated Statement of Changes in Equity | 10 |
Consolidated Statement of Cash Flows | 11 |
Notes to the Consolidated Financial Statements | 12 |
Director's Declaration | 28 |
Independent Auditor's Review Report | 29 |
Corporate Directory | 31 |
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Half Year 2021 Highlights
(Six months ended 31 December 2020)
For personal use only
Jaxsta enters into strategic
five-year commercial agreement
with Songtradr
82,369
Subscribers
Jaxsta hits a new Membership
Milestone
Billboard's 'The Player's Behind'
Editorial Campaign launches on
14th August 2020 - Powered by
Jaxsta
Jaxsta's 'Humans of Music'
Podcast launches syndication with Sirius XM's Volume Channel
The Recording Academy's
'Behind the Record' Partnership,
returns for a second year
20,824
Profile Claims
Jaxsta hits a new Profile Claim
Milestone
1 year anniversary of the
Jaxsta Pro Launch
Photo credit: Laura Stanley
For personal use only
Jaxsta Limited
December 2020 Half Year Report | Director's Report
Directors' Report
The Directors present their report on the consolidated entity (referred to hereafter as the 'Group' )
consisting of Jaxsta 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 2020 (the Directors' Report).
Directors and Chair
The following persons were Directors of Jaxsta during the whole of the financial year and up to the date of this Report, unless otherwise stated:
- Brett Cottle
- Jacqueline Louez Schoorl
- Jorge Nigaglioni
- Linda Jenkinson and
- Robert Gaunt
Review of operations
The half year ended 31 December 2020 was a critical period for Jaxsta as it prepared its operations to launch its Data Solutions business. Jaxsta provided its data in Billboard's "The Player's Behind" campaign which commenced in August and the Recording Academy's "Behind the Record" campaign in October 2020 and has been integrating its API into the partnership it entered into with Songtradr in September 2020.
The Company has also focused on customer analysis of its 84,000 plus members as it looks to re-launch its paid service via a tiered rollout strategy in the 2021 calendar year. The Company had to re-prioritise its development roadmap to optimise the rollout of both Jaxsta Data Solutions and Jaxsta Pro. The launch of both segments is the integral part of the Company's plan to move to profitability in the coming years, reducing the capital burden of the development and data contracts.
Key financial matters
The loss for the Group after providing for income tax amounted to $2,594,487 (31 December 2019: $3,275,430).
-
Employee Benefit Expense of $1,658,068 (31 December 2019: $1,853,449) includes a non-cash
component of $147,825 (31 December 2019: $194,784) to record share-based compensation expenses. The decrease was realised from the cost cutting measures in place due to the COVID-19 impact on the business starting in the prior year and continued during the half year. - Product Development Expense of $753,659 (31 December 2019: $959,481) includes a non-cash
component of $188,435 (31 December 2019: $446,496) to record share-based compensation
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Jaxsta Limited
December 2020 Half Year Report | Director's Report
expenses. The decrease was also related to the COVID-19 cost controls as well as the deferral of activities in relation to the delay in bringing Jaxsta Pro back to a paid subscription model.
- Cash & Cash equivalents at 31 December 2020 of $2,658,578 (30 June 2020: $2,404,848).
Additional capital raising activities were undertaken during the period resulting in the receipt of additional cash of $1,420,000 in the form of a convertible note. The Company also received an advance for future revenues of $500,000. This allowed the Group to fund product development and sales and marketing activities, and put the Group in a strong cash position as at 31 December 2020.
During the period ended 31 December 2020, the Company used its cash assets in a manner consistent with the prospectus issued on 7 September 2018.
For further commentary please refer to Notes to the Consolidated Financial Statements commencing on page 12 of this Report.
Development update
Jaxsta has developed an online platform to hold official music metadata to become a repository of official music-related information, comprising liner notes and label copy. The customer facing site at Jaxsta.com was launched on 13 June 2019. On 22 November 2019, Jaxsta launched its B2B subscription-based service, Jaxsta ProBeta which includes features normally only available to paid users. On 22 April 2020 in response to the significant impact COVID-19 had on the global music industry, the Company offered Jaxsta ProBeta for free to music industry professionals for the rest of the 2020 calendar year. As at 31 December 2020, Jaxsta ProBeta had 82,369 members and 20,824 profiles claimed.
Business strategies and prospects for future years
Jaxsta's near term focus is to commercialise its three business segments:
- Jaxsta Pro - Subscription and industry tools.
- Jaxsta Data Solutions - Jaxsta's large volume data solutions, including its commercial Application Programming Interface (API) and other bespoke solutions.
- Jaxsta Marketing & E-Commerce - Jaxsta's marketing initiatives to promote users and sponsors of its services, as well as third party affiliate sales.
In order to achieve the near term goals for the segments, the development focus for FY2021 is to deliver its commercial API for its initial customers, complete the integration of the Songtradr Neighbouring Rights solution into Jaxsta Pro and commence the roll out of the customer tiers of Jaxsta Pro in order to start commercialising key tiers in the 2021 calendar year.
The Group is still reliant on the support of its data partners who provide the data upon which the platform is based and on the acceptance of the product by the music industry. These two items will be key in the commercial rollout in FY2021.
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Jaxsta Limited
December 2020 Half Year Report | Director's Report
Significant changes in the state of affairs
Capital Raising
Additional capital raising activities were undertaken during the period resulting in the receipt of additional cash of $1,420,000 in the way of a convertible note. The Company also received an advance for future revenues of $500,000. This allowed the Group to fund product development and sales and marketing activities, and put the Group in a strong cash position as at 31 December 2020.
On-going consideration for disposal of material assets
In May 2018, Jaxsta (known at the time as Mobilarm Limited) entered into an agreement to sell all of the shares in its operating subsidiary, Marine Rescue Technologies Limited (MRT ), to Secure2Go Limited (S2G )and that agreement was subsequently amended to incorporate JJC Capital Pte Ltd (JJC )as a partial purchaser (S2G and JJC, together the MRT Purchasers). The sale of MRT was completed on 28 December 2018 and the outstanding amounts owed under the purchase were received on 2 December 2020, completing the transaction.
There were no other significant changes in the state of affairs of the consolidated entity during the financial period.
COVID-19
The Group adjusted its operations as a result of COVID-19 by offering its Jaxsta Pro service for free for at least the remainder of the 2020 calendar year, including the last half year. The performance/touring and recording sectors of the music industry had to cancel activities during the year affecting the income of many music professionals. The Group's action provided music professionals a tool to maximise the potential for their careers during and post COVID-19 by having their profiles with official credits be ready for their next engagement.
The Group reduced costs including the forfeit and temporary reduction of director's fees during the period of April to September 2020. The Group's mandate has been prudent use of its cash resources in line with achieving strategic goals of platform acceptance by the target market.
As a pre-revenue venture, the focus was on safely continuing operations and continuing the development of the Jaxsta platform whilst engaging customers during the free membership promotion. The safety of Jaxsta's employees was paramount and the Group implemented security measures to be able to work remotely. The Group continues to adjust its COVID-19 work from office and home policies as needed by changes in government mandates within each jurisdiction it operates.
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Jaxsta Limited
December 2020 Half Year Report | Director's Report
Matters subsequent to the reporting period
There are no events or circumstances that have arisen that would require disclosure in the financial report.
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 the Director's Report.
The report is made in accordance with a resolution of the Directors, pursuant to section 306(3)(a) of the Corporations Act 2001.
On behalf of the Directors
_______________________
Jacqui Louez Schoorl
Executive Director & Chief Executive Officer 25 February 2021
Sydney, New South Wales
5
Level 17, 383 Kent Street
Sydney NSW 2000
Correspondence to:
Locked Bag Q800
QVB Post Office
Sydney NSW 1230
onlyT +61 2 8297 2400 F +61 2 9299 4445
Einfo.nsw@au.gt.com
W www.grantthornton.com.au
Auditor's Independence Declaration
To the Directors of Jaxsta Limited
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the review of Jaxsta Limited for the half year ended 31 December 2020, I declare that, to the best of my knowledge and belief, there have been:
a | no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; | ||
use | and | ||
b | no contraventions of any applicable code of professional conduct in relation to the review. | ||
Grant Thornton Audit Pty Ltd | |||
Chartered Accountants | |||
R J Isbell | |||
Partner - Audit & Assurance | |||
Sydney, 25 February 2021 | |||
personalFor | |||
Grant Thornton Audit Pty Ltd ACN 130 913 594 | www.grantthornton.com.au | ||
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389 |
'Grant Thornton' refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another's acts or omissions. In the Australian context only, the use of the term 'Grant Thornton' may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation.
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Jaxsta Limited
Interim Financial Report | Consolidated Financial Statements
Consolidated Financial Statements
Consolidated Statement of Profit or Loss and Other Comprehensive Income for the half year ended 31 December 2020
Consolidated Statement of Financial Position
at at 31 December 2020
Consolidated Statement of Changes in Equity for the half year ended 31 December 2020
Consolidated Statement of Cash Flows for the half year ended 31 December 2020
Notes to the Consolidated Financial Statements
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Vinyl Group Ltd. published this content on 03 January 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 January 2024 14:11:57 UTC.