Humanitix Limited-Annual Report-30062019-v.1 (3)€¦ · Auditor's independence declaration 9 Independent auditor's report to the members of Humanitix Limited 10 Statement of profit

Humanitix Limited ABN 32 618 780 439

Annual Report - 30 June 2019

Humanitix Limited Contents 30 June 2019

1

CEOs' report 2Message from the Chair 4 Directors' report 5 Auditor's independence declaration 9 Independent auditor's report to the members of Humanitix Limited 10 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 17 Directors' declaration 25

CEOs’ REPORT

It has been an exciting year of growth at Humanitix. Our impact is growing fast as we scale across the country, working with thousands of events of all shapes and sizes. Comparing the 2018 financial year to 2019, we’ve almost tripled our impact for educating disadvantaged children, and are significantly closer to achieving a self-funding charity. In the 2019 financial year we won the Google Impact Challenge, a competition that searches for the best

ideas using technology to solve social problems. Humanitix also received a NSW Premiers Medal for leadership in social enterprise. Since the close of the 2019 financial year Humanitix’s growth has continued strongly, and we’ve excitingly announced strategic partnerships with both Canva and Facebook which we expect will boost our impact trajectory to close the education gaps affecting the most disadvantaged students. We are doing this because we believe education is a ticket to opportunity and that every child has the right to reach their potential. Our education projects aim to create a world where all children are born into a community where they can flourish and have the tools to create their own impact. Our event organisers can now direct the profits from our fees to one of three incredible education projects:

x Indigenous scholarships: Education is the key to a brighter future for Indigenous Australians and for our nation as a whole. Through our charity partner Yalari we provide full boarding scholarships for Indigenous children from regional, rural and remote communities in Australia. We see a word where Indigenous Australians experience better education, heath, wellbeing and life expectancy, consistent with our entire nation. Excitingly we are in the planning stages of potentially bringing on Yalari alumni students as Humanitix interns in 2020.

x Nutrition for disadvantaged school children: We have partnered with Ozharvest to deliver meals to disadvantaged children in Australia. We believe that feeding hungry school kids will allow them to focus on learning opportunities both in and out of the classroom, which will in turn decrease the inequality gap. In addition, the meals are redirected from quality excess food from commercial outlets which would have otherwise been wasted! Humanitix staff have now engaged with cooking meals at OzHarvest headquarters, further intertwining our work with the project.

x Literacy programs for young girls in the developing world: We know female

illiteracy is a complex challenge that has deep roots in each community’s cultural, religious and societal norms, and that tackling this complex problem requires persistence, long term funding, sustainable relationships and deep community engagement. This is why we partner with Room to Read and focus on deep, systemic transformation within schools.

Humanitix Co-Founders Adam McCurdie and Joshua Ross

We continue to believe that our move to refine our impact model in January 2019, and focus on these specific projects, we’re able to more effectively measure our impact and create lasting change.

We look forward to continuing to solve social problems through the power of technology, and thank our stakeholders for their continued support.

Adam McCurdie & Josh Ross Humanitix

Humanitix Limited Directors' report 30 June 2019

5

The directors present their report, together with the financial statements, on the company for the year ended 30 June 2019. Directors The following persons were directors of the company during the whole of the financial year and up to the date of this report, unless otherwise stated: Joshua Ross – Executive Director (and Company Secretary) Adam McCurdie – Executive Director (and Public Officer) Gai McGrath – Non-Executive Director Ray Kellerman – Non-Executive Director (resigned 5 February 2019) Phil Martin – Non-Executive Director (resigned 12 May 2019) Loredana Fyffe – Non-Executive Director Jonathan Rubinsztein – Non-Executive Director (appointed 15 August 2018) Deborah Thomas – Non-Executive Director (appointed 12 May 2019) Objectives The objective of the company is to solve social problems through the power of technology. The company's short-term goals are to provide education to disadvantaged children while simultaneously improving accessibility at live events for people with disabilities. The company's long-term goal is to educate over one million disadvantaged children every year, and improve social inclusion and community participation for people with accessibility challenges. Strategy for achieving the objectives The company would like to thank the Atlassian Foundation and Google.org for their generosity and for continuing to be the primary sponsors of Humanitix. The company is passionate about disrupting the events ticketing industry as a sustainable strategy to address the education gaps affecting the most disadvantaged children in the world, starting here in Australia. Specifically, the company's strategies include providing: 1. Nutrition for disadvantaged school children across Australia; 2. Education scholarships for regionally disadvantaged Indigenous students; and 3. Literacy and life skill programs for young girls in some of the poorest parts of the world. The company believes education is a ticket to opportunity and that every child has the right to reach their potential. The company's projects aim to create a world where all children are born into a community where they can flourish and have the tools to create their own impact. The company also continues to invest in its accessibility module for events, winning market share in the ticketing industry, which the company believes is the most impactful and sustainable way to achieve its objectives. Principal activities During the financial year the principal continuing activities of the company were ticketing activities to fund the operations of the company, and working with other benevolent institutions to deliver impactful education projects for disadvantaged students. Performance measures The company measures its performance in terms of outcomes of its education projects, as well as continued take-up of its accessibility module. After balance date events On 1 July 2019, the employees of Wisehives Pty. Ltd., a related party entity owned and controlled by co-CEO's of the company, were effectively transferred to the company without any consideration paid or received. As at the transfer date, the company signed new employment contracts with all transferred employees and assumed all leave liabilities associated with the previous employee services provided to Wisehives Pty. Ltd. by the transferred employees. No other matter or circumstance has arisen since 30 June 2019 that has significantly affected, or may significantly affect the company's operations, the results of those operations, or the company's state of affairs in future financial years.


6

Information on directors Name: Gai McGrath Title: Non-Executive Director (Chairperson) Positions: Director of Steadfast Group, Genworth Mortgage Insurance Australia, HBF Health,

IMB Bank and Toyota Finance Australia and a member of the Salvation Army’sSydney Red Shield Appeal Development Council.

Experience and expertise: Gai McGrath is a professional company director. Gai is able to draw on over 32 years’experience in leading businesses and the legal profession to help organisations thrive and grow. Gai is excited about the opportunity to contribute to Humanitix Limited as itpursues its bold goal to positively change the world using the power of technology.Gai was elected the Chairperson in April 2018.

Name: Ray Kellerman (Resigned February 2019) Title: Former Non-Executive Director Positions: Independent Chairman of Count Plus, Independent Chairman of Foundation Life NZ,

Independent Director of Goodman Funds Management Australia. Experience and expertise: Ray has 30 years’ experience in property and finance, sitting on multiple listed boards

and has an expansive network across Australia and New Zealand. Ray joinedHumanitix Limited and is excited by the combination of business & technology to solve global inequality in a sustainable manner - ‘combining capitalism andphilanthropy into a sustainable force for good by disrupting an industry notorious forgreed - Humanitix makes all the sense in the world to me’.

Special responsibilities: Former Chairperson of the Board Name: Phil Martin Title: Non-Executive Director Positions: Managing Director, Martin IT Experience and expertise: Phil is a qualified Enterprise Architect and has extensive senior management, scrum

mastering and delivery management experience. He has a history of deliveringprojects and partnering with businesses to ensure their success, through his softwareagency, Martin IT. He has worked at multiple levels across the IT Developmenthierarchy, and believes in constant learning and adaptation being the keys tosuccess. Phil was introduced to Humanitix Limited in 2016, and his team at Martin IThelped build Humanitix’s first web presence. He has been an avid supporter eversince.

Name: Loredana Fyffe Title: Non-Executive Director Positions: Communications & Giving Leader, Sydney Community Foundation Experience and expertise: Loredana has 13 years’ experience in philanthropy and fundraising and was instantly

inspired by Humanitix’s Limited innovative fundraising model. “I believe not-for-profits globally need to diversify their income streams, Humanitix’s intelligent socialenterprise solution creates a fundraising stream in perpetuity for those most in needin our communities. We are enabling social impact from event organisers at no cost and empowering event-goers to purchase tickets knowing they are doing good.”

Name: Jonathan Rubinsztein (Appointed 15 August 2018) Title: Non-Executive Director Positions: Chief Executive Officer (CEO) & Managing Director at Infomedia Experience and expertise: Jonathan is the CEO and Managing Director of Infomedia Ltd, a leading global

provider of SaaS solutions to the parts and service sector of the automotive industry.He is also a non-executive director of Missionvale Australia (a charity supporting the extremely poor township in South Africa). His focus & expertise are around enablingbusiness growth specifically in Sales and Marketing, Mergers and Acquisitions,Executive Leadership, Alliances and Strategy. Jonathan is a newly appointed Board Member with Humanitix Limited and is excited to be involved and support the growthof the business.


7

Name: Joshua Ross Title: Executive Director Positions: Co-CEO of Humanitix. Experience and expertise: Joshua has a combined bachelors of commerce with a major in accounting and

applied finance, completed his Chartered Financial Analysis. Prior to co-founding Humanitix he spent seven years working in the investment team at one of Australia’sleading hedge funds between 2010-2017.

Name: Adam McCurdie Title: Executive Director Positions: Co-CEO of Humanitix. Experience and expertise: Adam has a combined bachelors of Mechanical Engineering & Mathematics, as well

as a Masters of Agriculture Environmental Economics. Prior to co-founding Humanitix Adam had a career in management consulting at Accenture as part of theircommunications, media and technology practice.

Name: Deborah Thomas (Appointed 12 May 2019) Title: Non-Executive Director Positions: Member of Chief Executive Women and the Australian Institute of Company

Directors, and is a founding patron of the Taronga Conservation Foundation andcurrent chair of the Ensemble Theatre Foundation.

Experience and expertise: Deborah has over 30 years’ experience in consumer businesses including media,retail, entertainment and leisure across Australia and the United States. She hasproven skills and expertise in understanding customers, creating new products andrevenue streams, building brands and driving organisational change in industries impacted by technological disruption. Deborah is regarded as one of Australia’s most successful and respected mediaexecutives, with over 25 years’ experience across print, television, radio, digital andsocial media. She has managed some of Australia’s most popular magazine brandsincluding Editor-in-Chief of The Australian Women’s Weekly, a position she held foralmost a decade..

Meetings of directors The number of meetings of the company's Board of Directors ('the Board') held during the year ended 30 June 2019, and the number of meetings attended by each director were: Full Board Attended Held Joshua Ross 5 5Adam McCurdie 5 5Gai McGrath 4 5Ray Kellerman 3 3Phil Martin 3 3Loredana Fyffe 5 5Jonathan Rubinsztein 4 5Deborah Thomas 1 1 Held: represents the number of meetings held during the time the director held office. Contributions on winding up In the event of the company being wound up, ordinary members and affiliate members are required to contribute a maximum of $1 each. The total amount that members of the company are liable to contribute if the company is wound up is $2, based on 2 current ordinary members.


8

Indemnifying officer or auditor The company has not, during or since the end of the financial year indemnified or agreed to indemnify an officer or auditor of the company or any related body corporate against a liability incurred as an officer or auditor. Proceedings on behalf of the company No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the company, or to intervene in any proceedings to which the company is a party for the purpose of taking responsibility on behalf of the company for all or part of those proceedings. Auditor's independence declaration 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. On behalf of the directors ___________________________ Joshua Ross Director 20 December 2019

Humanitix Limited Auditor's independence declaration

9

[This page has intentionally been left blank for the insertion of the auditor's independence declaration]

Humanitix Limited Independent auditor's report to the members of Humanitix Limited

10

[This page has intentionally been left blank for the insertion of page one of the independent auditor's report]


11

[This page has intentionally been left blank for the insertion of page two of the independent auditor's report]


12

[This page has intentionally been left blank for the insertion of page three of the independent auditor's report]

Humanitix Limited Statement of profit or loss and other comprehensive income For the year ended 30 June 2019

Note 2019 2018 $ $

The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes

13

Revenue 4 1,507,839 1,053,576 Interest revenue 28,493 7,059 Expenses Merchant fees (76,334) (29,137)Ticketing Platform & Support expenses (351,000) (207,927)Donations paid (196,240) (67,209)Employee benefits expense (376,847) (120,366)Depreciation and amortisation expense (225) - Occupancy expense (13,636) - Other expenses (98,740) (22,011)Finance costs (195) (191) Surplus before income tax expense 423,115 613,794 Income tax expense - - Surplus after income tax expense for the year 14 423,115 613,794 Other comprehensive income for the year, net of tax - - Total comprehensive income for the year 423,115 613,794

Humanitix Limited Statement of financial position As at 30 June 2019

Note 2019 2018 $ $

The above statement of financial position should be read in conjunction with the accompanying notes 14

Assets Current assets Cash and Cash Equivalents 5 1,823,274 979,383 Trade and Other Receivables 6 35,364 2,757 Financial Assets 7 925,000 - Other Assets 8 1,786 4,000 Total current assets 2,785,424 986,140 Non-current assets Property, Plant and Equipment 9 2,468 - Total non-current assets 2,468 - Total assets 2,787,892 986,140 Liabilities Current liabilities Trade and Other Payables 10 1,730,856 346,423 Employee Benefits 11 18,305 14,228 Other Liabilities 12 - 11,695 Total current liabilities 1,749,161 372,346 Non-current liabilities Employee Benefits 13 1,822 - Total non-current liabilities 1,822 - Total liabilities 1,750,983 372,346 Net assets 1,036,909 613,794 Equity Retained Surpluses 14 1,036,909 613,794 Total equity 1,036,909 613,794

Humanitix Limited Statement of changes in equity For the year ended 30 June 2019

The above statement of changes in equity should be read in conjunction with the accompanying notes 15

Retained Total equity surpluses

$ $ Balance at 1 July 2017 - - Surplus after income tax expense for the year 613,794 613,794Other comprehensive income for the year, net of tax - - Total comprehensive income for the year 613,794 613,794 Balance at 30 June 2018 613,794 613,794 Retained

Total equity surpluses $ $ Balance at 1 July 2018 613,794 613,794 Surplus after income tax expense for the year 423,115 423,115Other comprehensive income for the year, net of tax - - Total comprehensive income for the year 423,115 423,115 Balance at 30 June 2019 1,036,909 1,036,909

Humanitix Limited Statement of cash flows For the year ended 30 June 2019

Note 2019 2018 $ $

The above statement of cash flows should be read in conjunction with the accompanying notes 16

Cash flows from operating activities Receipts from customers (inclusive of GST) 1,990,211 600,336 Payments to suppliers and employees (inclusive of GST) (1,047,843) (444,917)Donations and grants received 806,496 817,096 1,748,864 972,515 Interest received 22,915 7,059 Interest and other finance costs paid (195) (191) Net cash from operating activities 1,771,584 979,383 Cash flows from investing activities Payments for property, plant and equipment 9 (2,693) - Payments for term deposits (925,000) - Net cash used in investing activities (927,693) - Net cash from financing activities - - Net increase in cash and cash equivalents 843,891 979,383 Cash and cash equivalents at the beginning of the financial year 979,383 - Cash and cash equivalents at the end of the financial year 5 1,823,274 979,383

Humanitix Limited Notes to the financial statements 30 June 2019

17

Note 1. General information The financial statements cover Humanitix Limited as an individual entity. The financial statements are presented in Australian dollars, which is Humanitix Limited's functional and presentation currency. Humanitix Limited is a not-for-profit unlisted public company limited by guarantee. The financial statements were authorised for issue, in accordance with a resolution of directors, on 20 December 2019. The directors have the power to amend and reissue the financial statements. Registered office and Principal place of business Ground floor 3 Minna Cl Belrose NSW 2085 Note 2. Significant accounting policies The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. New or amended Accounting Standards and Interpretations adopted The company 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. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial performance or position of the company. The following Accounting Standards and Interpretations are most relevant to the company: New Standards and Interpretations not yet adopted The AASB has issued new and amended accounting standards and interpretations that have mandatory application dates from 1 January 2019 and will be applicable in the 2019 financial year. The Company has not opted for early adoption of these standards. AASB 16 Leases – The revised standard removes the distinction between operating and finance leases for leases. The standard requires rights and obligations relating to most leases to be recognised on the balance sheet. The Company has not yet considered the impact of all leases and agreements currently in place. AASB 1058 Income for Not for Profits – This standard primarily applies to income not accounted for under AASB 15. This standard establishes principles applying to transactions where the consideration to acquire an asset is significantly less than fair value principally to enable a not-for-profit entity to further its objectives and the receipt of volunteer services. The changes in revenue recognition requirements in AASB 1058 may cause changes to the timing and amount of income recorded in the financial statements as well as additional disclosures. This includes contributions of assets at less than fair value, peppercorn leases and volunteer services. Basis of preparation These general purpose financial statements have been prepared in accordance with Australian Accounting Standards - Reduced Disclosure Requirements and Interpretations issued by the Australian Accounting Standards Board ('AASB'), the Australian Charities and Not-for-profits Commission Act 2012 and New South Wales legislation the Charitable Fundraising Act 1991 and associated regulations, as appropriate for not-for profit oriented entities. Historical cost convention The financial statements have been prepared under the historical cost convention.


Note 2. Significant accounting policies (continued)

18

Critical accounting estimates The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 3. Revenue recognition The company recognises revenue as follows: Booking Fees: Booking fees are recognised as earned when received or receivable. Donations and contributions Donations and contributions, including non-reciprocal grants are recognised at the time when received. Interest Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset. Other revenue Other revenue is recognised when it is received or when the right to receive payment is established. Income tax As the company is a charitable institution in terms of subsection 50-5 of the Income Tax Assessment Act 1997, as amended, it is exempt from paying income tax. Current and non-current classification Assets and liabilities are presented in the statement of financial position based on current and non-current classification. An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the company's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current. A liability is classified as current when: it is either expected to be settled in the company's normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-current. Cash and cash equivalents Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Trade and other receivables Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 30 days. The company has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance. Other receivables are recognised at amortised cost, less any allowance for expected credit losses.



19

Investments and other financial assets Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the initial measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently measured at either amortised cost or fair value depending on their classification. Classification is determined based on both the business model within which such assets are held and the contractual cash flow characteristics of the financial asset unless an accounting mismatch is being avoided. Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred and the company has transferred substantially all the risks and rewards of ownership. When there is no reasonable expectation of recovering part or all of a financial asset, it's carrying value is written off. Financial assets at amortised cost A financial asset is measured at amortised cost only if both of the following conditions are met: (i) it is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and (ii) the contractual terms of the financial asset represent contractual cash flows that are solely payments of principal and interest. Investments Investments includes non-derivative financial assets with fixed or determinable payments and fixed maturities where the company has the positive intention and ability to hold the financial asset to maturity. This category excludes financial assets that are held for an undefined period. Investments are carried at amortised cost using the effective interest rate method adjusted for any principal repayments. Gains and losses are recognised in profit or loss when the asset is derecognised or impaired. Impairment of financial assets The company recognises a loss allowance for expected credit losses on financial assets which are either measured at amortised cost or fair value through other comprehensive income. The measurement of the loss allowance depends upon the company's assessment at the end of each reporting period as to whether the financial instrument's credit risk has increased significantly since initial recognition, based on reasonable and supportable information that is available, without undue cost or effort to obtain. Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month expected credit loss allowance is estimated. This represents a portion of the asset's lifetime expected credit losses that is attributable to a default event that is possible within the next 12 months. Where a financial asset has become credit impaired or where it is determined that credit risk has increased significantly, the loss allowance is based on the asset's lifetime expected credit losses. The amount of expected credit loss recognised is measured on the basis of the probability weighted present value of anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate. For financial assets measured at fair value through other comprehensive income, the loss allowance is recognised within other comprehensive income. In all other cases, the loss allowance is recognised in profit or loss. Property, plant and equipment Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment over their expected useful lives as follows: Plant and equipment 3-7 years The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date. An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the company. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss.



20

Impairment of non-financial assets Goodwill and other intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-use is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a cash-generating unit. Trade and other payables These amounts represent liabilities for goods and services provided to the company prior to the end of the financial year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition. Events Payable Amounts received from customers on behalf of events organisers are held by the Company until the event takes place. Once the event takes place, the amount collected less the booking fees due to the Company are paid to the event organisers within 5 - 7 working days. Employee benefits Short-term employee benefits Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled. Other long-term employee benefits The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are measured at the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows. Defined contribution superannuation expense Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred. Fair value measurement When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; and assumes that the transaction will take place either: in the principal market; or in the absence of a principal market, in the most advantageous market. Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based on its highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. Goods and Services Tax ('GST') and other similar taxes Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of the expense.



21

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of financial position. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the tax authority, are presented as operating cash flows. Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority. Note 3. Critical accounting judgements, estimates and assumptions The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed below. Estimation of useful lives of assets The company determines the estimated useful lives and related depreciation and amortisation charges for its property, plant and equipment and finite life intangible assets. The useful lives could change significantly as a result of technical innovations or some other event. The depreciation and amortisation charge will increase where the useful lives are less than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off or written down. Employee benefits provision As discussed in note 2, the liability for employee benefits expected to be settled more than 12 months from the reporting date are recognised and measured at the present value of the estimated future cash flows to be made in respect of all employees at the reporting date. In determining the present value of the liability, estimates of attrition rates and pay increases through promotion and inflation have been taken into account. Note 4. Revenue 2019 2018 $ $ Donations and grants 806,496 817,096 Booking fees revenue 665,365 211,668 Other revenue 35,978 24,812 Revenue 1,507,839 1,053,576 Note 5. Current assets - Cash and Cash Equivalents 2019 2018 $ $ Cash at bank 1,523,274 979,383 Cash on deposit 300,000 - 1,823,274 979,383


22

Note 6. Current assets - Trade and Other Receivables 2019 2018 $ $ Trade receivables - 1,940 Loan to related party 29,786 - Accrued income 5,578 - 35,364 1,940 Other receivables - 817 35,364 2,757 Note 7. Current assets - Financial Assets 2019 2018 $ $ Term deposits 925,000 - Note 8. Current assets - Other Assets 2019 2018 $ $ Prepayments 1,786 4,000 Note 9. Non-current assets - Property, Plant and Equipment 2019 2018 $ $ Computer equipment - at cost 2,693 - Less: Accumulated depreciation (225) - 2,468 - Reconciliations Reconciliations of the written down values at the beginning and end of the current financial year are set out below: Computer equipment Total $ $ Balance at 1 July 2018 - -Additions 2,693 2,693Depreciation expense (225) (225) Balance at 30 June 2019 2,468 2,468


23

Note 10. Current liabilities - Trade and Other Payables 2019 2018 $ $ Trade payables - payables to event organisers 1,669,739 342,147 Other payables 45,940 - BAS payable 15,177 4,276 1,730,856 346,423 Note 11. Current liabilities - Employee Benefits 2019 2018 $ $ Annual leave liability 18,305 14,228 Note 12. Current liabilities - Other Liabilities 2019 2018 $ $ Deferred revenue - 11,695 Note 13. Non-current liabilities - Employee Benefits 2019 2018 $ $ Long service leave liability 1,822 - Note 14. Equity - Retained Surpluses 2019 2018 $ $ Retained surpluses at the beginning of the financial year 613,794 - Surplus after income tax expense for the year 423,115 613,794 Retained surpluses at the end of the financial year 1,036,909 613,794 Note 15. Key Management Personnel Disclosures Compensation The aggregate compensation made to directors and other members of key management personnel of the company is set out below: 2019 2018 $ $ Aggregate compensation 150,208 63,847 Note 16. Related Party Transactions Key management personnel Disclosures relating to key management personnel are set out in note 15.


Note 16. Related Party Transactions (continued)

24

Transactions with related parties The following transactions occurred with related parties: 2019 2018 $ $ Payment for goods and services: Purchase of services from Wisehives Pty. Ltd. - Related party entity owned and controlled by co-CEO's

351,000 207,927

Other transactions: Wisehives Pty. Ltd. events loan write off 1,634 - Receivable from and payable to related parties There were no trade receivables from or trade payables to related parties at the current and previous reporting date. Loans to/from related parties The following balances are outstanding at the reporting date in relation to loans with related parties: 2019 2018 $ $ Current receivables: Loan to Humanitix New Zealand Charitable Trust - Related party entity controlled by co-CEO's

29,786 -

Loan to Wisehives Pty. Ltd. - Related party entity owned and controlled by co-CEO's - 817 Terms and conditions All transactions were made on normal commercial terms and conditions and at market rates. Note 17. Events after the reporting period On 1 July 2019, the employees of Wisehives Pty. Ltd., a related party entity owned and controlled by co-CEO's of the company, were effectively transferred to the company without any consideration paid or received. As at the transfer date, the company signed new employment contracts with all transferred employees and assumed all leave liabilities associated with the previous employee services provided to Wisehives Pty. Ltd. by the transferred employees. No other matter or circumstance has arisen since 30 June 2019 that has significantly affected, or may significantly affect the company's operations, the results of those operations, or the company's state of affairs in future financial years. Note 18. Members Guarantee The company is limited by guarantee. If the company is wound up, the Constitution states that each member is required to contribute a maximum of $1 each towards any outstanding obligations of the company. At 30 June 2019, the number of members was 2 (30 June 2018: 2).

Humanitix Limited Directors' declaration 30 June 2019

25

In the directors' opinion: ● the attached financial statements and notes comply with the Corporations Act 2001, the Australian Accounting

Standards - Reduced Disclosure Requirements, the Australian Charities and Not-for-profits Commission Act 2012 andNew South Wales legislation the Charitable Fundraising Act 1991 and associated regulations, the CorporationsRegulations 2001 and other mandatory professional reporting requirements;

● the attached financial statements and notes give a true and fair view of the company's financial position as at 30 June

2019 and of its performance for the financial year ended on that date; and ● there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due

and payable. Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001. On behalf of the directors ___________________________ Joshua Ross Director 20 December 2019

Documents

Humanitix Limited-Annual Report-30062019-v.1 (3)€¦ · Auditor's independence declaration 9 Independent auditor's report to the members of Humanitix Limited 10 Statement of profit