CYCLIQ GROUP LTD — Interim / Quarterly Report 2023

APPENDIX 4D – HALF-YEAR REPORT FOR THE

Period Ended 31 December 2022

CYCLIQ GROUP LIMITED

ABN 47 119 749 647

Appendix 4D

Half-Year Report Period

Results

Reporting Periods

• Current period:

• Previous corresponding period:

Six-month period ended 31 December 2022 Six-month period ended 31 December 2021

Percentage Change  Revenue Down 2.5% to  Other Income Down 21% to  Profit/(Loss) before tax Up 2% to  Profit/(Loss) after tax Up 2% to  EBITDA Down 74% to	31 December 2022 $'000s 31 December 2021 $'000s
	2,894 2,969 186 235 (55) (55) (55) (55) 78 294

Dividends Current period:  Interim Dividend  Date the Dividend is Payable:  Record Date for determining entitlements to the Dividend: Previous corresponding period:  Interim Dividend	Amount per security $ Franked amount $
	Nil N/A N/A N/A N/A N/A Nil N/A
Net Tangible Assets (NTA) per Security Dividends NTA backing per ordinary share - 0% to
	31 December 2022 ₵ 30 June 2022 ₵
	0.0023 0.0023

Commentary on Results

The Group achieved a strong operating result for the period with a gross profit of $1.5 million – an 11% increase compared to the same period last year. A reduced cost base streamlined, shipping operations and a targeted marketing strategy continue to deliver solid fundamentals.

The Company retains good stock levels enabling it to deploy aggressive marketing strategies targeted at Northern hemisphere markets during their spring months.

The newly launched Fly12 Sport leads the way in sales as consumers enjoy the benefits of its higher specification offering. The Fly12 Sport has a retail price point 30% higher than that of the Fly6 Gen3 and validates Cycliq’s innovation and product development strategy.

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XAVIER KRIS

Non-Executive Chairman Dated this Thursday, 16 February 2023

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Cycliq Group Limited

ABN 47 119 749 647

INTERIM FINANCIAL REPORT for the half-year ended 31 December 2022

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CYCLIQ GROUP LIMITED AND CONTROLLED ENTITIES ABN 47 119 749 647

INTERIM FINANCIAL REPORT

31 December 2022

Corporate directory

Current Directors

Xavier Kris Non-Executive Chairman David Wheeler Non-Executive Director Chris Mews Non-Executive Director

Company Secretary

Tim Slate Joint Company Secretary Carla Healy Joint Company Secretary

Registered Office

Address: Level 3, 101 St Georges Terrace Perth, WA 6000 Telephone: +61 (8) 6558 0886 Facsimile: +61 (8) 6316 3337 Email: [email protected] Website: www.cycliq.com

Securities Exchange

Australian Securities Exchange ASX Code: CYQ.AX

Share Registry

Advanced Share Registry

Principal place of business

Address: Unit 14, 513 Hay Street, Subiaco, WA, 6008 Email: [email protected] Website: www.cycliq.com

Auditors

Hall Chadwick WA Audit Pty Ltd

Address: 283 Rokeby Road Subiaco WA 6008 Telephone: +61 (8) 9426 0666 Website: www.hallchadwickwa.com.au

Address: 110 Stirling Hwy, Nedlands Perth WA 6009

Telephone: +61 (8) 9389 8033 Website: www.advancedshare.com.au

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INTERIM FINANCIAL REPORT

31 December 2022

AND CONTROLLED ENTITIES ABN 47 119 749 647

CYCLIQ GROUP LIMITED

Contents

Directors' report ............................................................................................................................................................................. 1 Auditors independence declaration ............................................................................................................................................... 3 Condensed consolidated statement of profit or loss and other comprehensive income .............................................................. 4 Condensed consolidated statement of financial position ............................................................................................................. 5 Condensed consolidated statement of changes in equity .............................................................................................................. 6 Condensed consolidated statement of cash flows ......................................................................................................................... 7 Notes to the condensed consolidated financial statements .......................................................................................................... 8 Directors' declaration ................................................................................................................................................................... 20 Independent auditor's review report ........................................................................................................................................... 21

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CYCLIQ GROUP LIMITED AND CONTROLLED ENTITIES ABN 47 119 749 647

INTERIM FINANCIAL REPORT

31 December 2022

Directors' report

Your directors present their report on the consolidated entity, consisting of Cycliq Group Limited ( Cycliq or the Company ) and its controlled entities (collectively the Group ), for the half-year ended 31 December 2022.

1. Directors

The names of Directors in office at any time during or since the end of the half-year are:

 Xavier Kris Non-Executive Chairman

 David Wheeler Non-Executive Director

 Chris Mews Non-Executive Director

Directors have been in office since the start of the half-year to the date of this report unless otherwise stated.

2. Operating and financial review

2.1. Operations Review

The Group achieved a strong operating result for the period with a gross profit of $1.5 million – an 11% increase compared to the same period last year. A reduced cost base streamlined shipping operations and a targeted marketing strategy continue to deliver solid fundamentals.

Cycliq returned a significantly stronger cashflow during the period ending 31 December 2022, compared to the same period last year, achieving a net positive operating cash flow of $274,968.

The Company retains good stock levels enabling it to deploy aggressive marketing strategies targeted at Northern hemisphere markets during their spring months.

The newly launched Fly12 Sport leads the way in sales as consumers enjoy the benefits of its higher specification offering. The Fly12 Sport has a retail price point 30% higher than that of the Fly6 Gen3 and validates Cycliq’s innovation and product development strategy. As a result, Research and Development into other new product releases continues at pace.

On 18 October 2022, the Company announced the receipt of $172,000 cash refund under the Federal Governments Research and Development Tax incentive Scheme.

2.2. Financial Review

a. Operating results

For the period ended 31 December 2022 the Group delivered a net loss of $66,163 (31 December 2021: loss of $44,273).

b. Financial position

The net assets of the Group have decreased marginally from $1,085,769 at 30 June 2022 to $1,057,968 at 31 December 2022.

3. Events Subsequent to Reporting Date

There are no events of a material nature or transaction that have arisen since year end and the date of this report that has significantly affected, or may significantly affect, the Group’s operations, the results of those operations or its state of affairs.

4. Future Developments, Prospects and Business Strategies

Disclosure of information regarding likely developments in operations of the Group in future financial years and the expected results of those operations is likely to result in unreasonable prejudice to the Group. Therefore this information has not been disclosed in the report.

5. Environmental Regulations

In the normal course of business, there are no environmental regulations or requirements that the Company is subject to.

The Directors have considered the enacted National Greenhouse and Energy Reporting Act 2007 (the NGER Act) which introduced a single national reporting framework for the reporting and dissemination of information about the greenhouse gas emissions, greenhouse gas projects, and energy use and production of corporations. At the current stage of development, the Directors have determined that the NGER Act has no effect on the Company for the current period. The Directors will reassess this position when the need arises.

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INTERIM FINANCIAL REPORT

31 December 2022

AND CONTROLLED ENTITIES ABN 47 119 749 647

CYCLIQ GROUP LIMITED

Directors' report

6. Auditor's independence declaration

The lead auditor's independence declaration under section 307C of the Corporations Act 2001 (Cth) for the half-year ended 31 December 2022 has been received and can be found on page 3 of the Interim Financial Report.

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XAVIER KRIS

Non-Executive Chairman

Dated this Thursday, 16 February 2023

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To the Board of Directors

Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001

As lead audit partner for the review of the financial statements of Cycliq Group Limited for the half year ended 31 December 2022, I declare that to the best of my knowledge and belief, there have been no contraventions of:

• the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

• any applicable code of professional conduct in relation to the review.

Yours Faithfully,

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HALL CHADWICK WA AUDIT PTY LTD CHRIS NICOLOFF CA Director

Dated 16[th] day of February 2023 Perth, Western Australia

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31 December 2022

AND CONTROLLED ENTITIES ABN 47 119 749 647

CYCLIQ GROUP LIMITED

INTERIM FINANCIAL REPORT

Condensed consolidated statement of profit or loss and other comprehensive income for half-year ended 31 December 2022

for half-year ended 31 December 2022
Note	31 December 31 December
	2022 2021
	$ $
Continuing operations Revenue 2a Costs of sales Gross Profit Other income 2b Administrative expenses 3a Advertising & Marketing expenses Employee related costs 3b Share based payments expense 4 Research and development expenses Depreciation and amortisation Other operating expenses 3c Finance costs Loss before tax Income tax benefit / (expense) Loss for the half-year Loss after income tax for the half-year attributable to:  Non-controlling interest  Members of the parent entity Other comprehensive (loss)/income, net of income tax  Exchange difference on translating foreign operations attributable to Parent Other comprehensive (loss)/ income for the half-year, net of tax Total comprehensive loss for the half year Total Comprehensive income/(loss) for the half-year attributable to:  Non-controlling interest  Members of the parent entity Earnings per share: Basic and diluted loss per share (cents per share) 5	2,894,232 2,969,060 (1,402,614) (1,629,002)
	1,491,618 1,340,058
	186,285 235,161 (285,330) (271,426) (266,358) (67,203) (742,521) (585,688) (38,362) - (11,779) (23,034) (113,183) (70,502) (255,983) (333,354) (19,121) (279,720)
	(54,734) (55,708) - -
	(54,734) (55,708)
	6,458 32,105 (61,192) (87,813)
	(54,734) (55,708)
	(11,429) 11,435
	(11,429) 11,435
	(66,163) (44,273)
	6,458 32,105 (72,621) (76,378)
	(66,163) (44,273)
	(cents) (cents) (0.0176) (0.0253)

The condensed consolidated statement of profit or loss and other comprehensive income is to be read in conjunction with the accompanying notes.

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INTERIM FINANCIAL REPORT

31 December 2022

AND CONTROLLED ENTITIES ABN 47 119 749 647

CYCLIQ GROUP LIMITED

Condensed consolidated statement of financial position as at 31 December 2022

Note	31 December 30 June
	2022 2022
	$ $
Current assets Cash and cash equivalents Trade and other receivables 6 Inventories 7 Prepayments 8 Total current assets Non-current assets Trade and other receivables 6 Plant and equipment 9 Intangible assets 10 Right-of-use Assets 11 Total non-current assets Total assets Current liabilities Trade and other payables 12 Provisions 14 Borrowings 13 Lease liabilities 15 Total current liabilities Non-current liabilities Lease liabilities 15 Total non-current liabilities Total liabilities Net assets / (deficiency) Equity Issued capital 16 Reserves Accumulated losses Parent entity interest Minority interest Total equity	1,051,684 1,011,310 44,415 35,554 536,488 328,040 620,424 590,524
	2,253,011 1,965,428
	8,663 8,663 15,922 11,904 252,441 266,580 16,010 26,683
	293,036 313,830
	2,546,047 2,279,258
	1,277,060 992,029 194,364 132,775 - 41,364 16,655 21,790
	1,488,079 1,187,958
	- 5,531
	- 5,531
	1,488,079 1,193,489
	1,057,968 1,085,769
	16,068,852 16,068,852 4,190,833 4,163,900 (19,165,002) (19,103,810)
	1,094,683 1,128,942 (36,715) (43,173)
	1,057,968 1,085,769

The condensed consolidated statement of financial position is to be read in conjunction with the accompanying notes.

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31 December 2022

AND CONTROLLED ENTITIES ABN 47 119 749 647

CYCLIQ GROUP LIMITED

INTERIM FINANCIAL REPORT

Condensed consolidated statement of changes in equity

for the half-year ended 31 December 2022

	Issued Foreign Currency Translation Share Based Payments Warrants Reserve Convertible Notes Accumulated Minority
	Capital Reserve Reserve Reserve Losses Interest Total
	$ $ $ $ $ $ $ $
	15,568,852 10,130 3,965,551 103,575 21,150 (18,274,708) (101,443) 1,293,107
	- - - - - (87,813) 32,105 (55,708) - 11,435 - - - - - 11,435
	- 11,435 - - - (87,813) 32,105 (44,273)
	500,000 - - - - - - 500,000
	16,068,852 21,565 3,965,551 103,575 21,150 (18,362,521) (69,338) 1,748,834
Balance at 1 July 2022 Loss for the half-year attributable owners of the parent Other comprehensive income: Total comprehensive income/(loss) for the half-year attributable owners of the parent Transaction with owners, directly in equity Issue of performance shares Balance at 31 December 2022
	16,068,852 25,674 4,013,501 103,575 21,150 (19,103,810) (43,173) 1,085,769
	- - - - - (61,192) 6,458 (54,734)
	- (11,429) - - - - - (11,429)
	- (11,429) - - - (61,192) 6,458 (66,163)
	- - 38,362 - - - - 38,362
	16,068,852 14,245 4,051,863 103,575 21,150 (19,165,002) (36,715) 1,057,968

The condensed consolidated statement of changes in equity is to be read in conjunction with the accompanying notes

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INTERIM FINANCIAL REPORT

31 December 2022

AND CONTROLLED ENTITIES ABN 47 119 749 647

CYCLIQ GROUP LIMITED

Condensed consolidated statement of cash flows

for the half-year ended 31 December 2022

Condensed consolidated statement of cash flows for the half-year ended 31 December 2022
Note	31 December 31 December
	2022 2021
	$ $
Cash flows from operating activities Receipts from customers Other income received Interest and borrowing costs received Interest and borrowing costs paid Payments to suppliers and employees Net cash from/(used in) operating activities Cash flows from investing activities Purchase of intangible assets (capitalised development costs) Purchase of plant and equipment Net cash used in investing activities Cash flows from financing activities Repayment of borrowings Net cash used in financing activities Net increase/(decrease) in cash held Foreign exchange effects on cash balances held Cash and cash equivalents at the beginning of the half-year Cash and cash equivalents at the end of the half-year
	2,870,459 2,751,196 186,285 223,000 - 35 (19,121) (9,244) (2,762,655) (3,040,701)
	274,968 (75,714)
	(90,839) (108,526) (5,718) -
	(96,557) (108,526)
	(41,364) (338,879)
	(41,364) (338,879)
	137,047 (523,119) (96,673) (25,813) 1,011,310 2,246,682
	1,051,684 1,697,750

The condensed consolidated statement of cash flows is to be read in conjunction with the accompanying notes.

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CYCLIQ GROUP LIMITED

INTERIM FINANCIAL REPORT

31 December 2022

AND CONTROLLED ENTITIES ABN 47 119 749 647

Notes to the condensed consolidated financial statements

for the half-year ended 31 December 2022

`

Note 1 Statement of significant accounting policies

These are the consolidated financial statements and notes of Cycliq Group Limited ( Cycliq or the Company ) and controlled entities (collectively the Group ). Cycliq is a company limited by shares, domiciled and incorporated in Australia.

The financial statements were authorised for issue on 16 February 2023 by the directors of the Company.

• a. Basis of preparation

This interim financial report is intended to provide users with an update on the latest annual financial statements of Cycliq Group Limited and its controlled entities. As such, it does not contain information that represents relatively insignificant changes occurring during the half-year within the Group. It is therefore recommended that this financial report be read in combination with the annual financial statements of the Group for the year ended 30 June 2022 together with any public announcements made during the half-year.

All amounts are presented in Australian Dollars unless otherwise noted. For the purposes of preparing the report, the half year has been treated as a discrete reporting period.

• i. Statement of compliance

The half-year financial report is a general-purpose financial report prepared in accordance with the Corporations Act 2001 and AASB 134 Interim Financial Reporting . Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 Interim Financial Reporting . The half-year report does not include notes of the type normally included in an annual financial report and shall be read in conjunction with the most recent annual financial report.

The financial statements have been prepared on an accruals basis and are based on historical costs modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.

• ii. Going concern

The half year financial report has been prepared on a going concern basis which contemplates the continuity of normal business activity, and the realisation of assets and the settlement of liabilities in the ordinary course of business.

The Group incurred a loss for the period of $54,734 (31 December 2021: $55,708 loss) and a net operating cash in-flow of $274,968 (31 December 2021: $75,714 out-flow). At 31 December 2022 the Group held cash assets of $1,051,684 with current liabilities of $1,488,079 (30 June 2022 cash assets of $1,011,310 with current liabilities of $1,187,958). These factors indicate a material uncertainty that may cast significant doubt about the Group’s ability to continue as a going concern. The directors have prepared a cashflow forecast which indicates that the group will have sufficient cashflows to meet all commitments and working capital requirements for the 12-month period from the date of signing this report.

The Directors are confident of the Group’s ability to continue as a going concern for the following reasons:

• Management have prepared a cashflow forecast for the next 12 months that indicates the operating cash inflows will be sufficient to meet expenses and other financial obligations as and when they are due;

• Management believe Cycliq’s market opportunity is significant which the group is continuing to generate revenue;

• Management are confident of generating sufficient revenue from the sale of Fly6, and Fly12 Sport and the complementary purchase opportunities for customers; and

• The ability to raise capital or loans from shareholders or related parties.

Based on the cash flow forecasts and other factors referred to above, the directors are satisfied that the going concern basis of preparation is appropriate for this financial report.

Should the Group’s cash flow deviate from the cash flow forecast, a material uncertainty will exist that cast significant doubt on the Group’s ability to continue as a going concern and it may be required to realise its assets and extinguish its liabilities other than in the normal course of business and at amounts different to those stated in the financial statements.

The financial statements do not include any adjustment relating to the recoverability or classification of recorded asset amounts or to the amounts or classification of liabilities that might be necessary should the Group not be able to continue as a going concern.

• iii. Accounting policies

The same accounting policies and methods of computation have been followed in this interim financial report as were applied in the most recent annual financial statements.

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INTERIM FINANCIAL REPORT

31 December 2022

AND CONTROLLED ENTITIES ABN 47 119 749 647

CYCLIQ GROUP LIMITED

Notes to the condensed consolidated financial statements

for the half-year ended 31 December 2022

`

Note 1 Statement of significant accounting policies

• b. Use of estimates and judgments

The preparation of the interim financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amount of assets and liabilities, income and expenses. Actual results may differ from these estimates.

In preparing these interim financial statements, significant judgements made by management in applying the Company’s accounting policies and key sources of estimation uncertainty were the same as those that were applied to the consolidated financial statements as at and for the year ended 30 June 2022.

• c. New and amended standards adopted by the Group

A number of new standards, amendments to standards and interpretations issued by AASB which are not yet mandatorily applicable to the Company have not been applied in preparing these financial statements. The Company does not plan to adopt these standards early.

• i. Other standards not yet applicable

There are no other standards that are not yet effective and that would be expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions.

Note 2 Revenue and other income	31 December 31 December
	2022 2021
	$ $
a. Revenue Fly12 Sport sales Fly12 CE sales Fly6 Gen 3 sales Other accessories sales Other b. Other income Grant income Interest income Other income
	1,535,850 - 69,043 1,173,793 733,600 1,449,360 423,209 242,295 132,530 103,612
	2,894,232 2,969,060
	186,285 223,000 - 35 - 12,126
	186,285 235,161

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INTERIM FINANCIAL REPORT

31 December 2022

AND CONTROLLED ENTITIES ABN 47 119 749 647

CYCLIQ GROUP LIMITED

Notes to the condensed consolidated financial statements

for the half-year ended 31 December 2022

Note 3 Expenses	31 December 31 December
	2022 2021
	$ $
The following significant revenue and expense items are relevant in explaining the financial performance: a. Administrative expenses: ▫ Consultants expenses ▫ Audit fee expenses ▫ Legal expenses ▫ ASX operating expenses ▫ Share registry expenses ▫ Other administrative expenses b. Employee related expenses: ▫ Salaries and wages ▫ Annual Leave expenses ▫ Superannuation costs ▫ Sub-contractor costs ▫ Directors fees ▫ Other c. Other operating costs ▫ Travel & Accommodation expenses ▫ Foreign currency gains and losses ▫ IT costs ▫ Insurance ▫ Rental expense ▫ Other operating expenses
	140,492 100,774 30,069 21,417 51,997 68,657 13,495 26,261 6,355 18,566 42,922 35,751
	285,330 271,426
	322,706 226,212 15,297 16,711 38,073 22,351 269,922 198,692 96,000 114,000 523 7,722
	742,521 585,688
	513 142 59,457 37,249 35,557 34,983 41,364 32,197 12,822 16,125 106,270 212,658
	255,983 333,354

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CYCLIQ GROUP LIMITED AND CONTROLLED ENTITIES ABN 47 119 749 647

INTERIM FINANCIAL REPORT

31 December 2022

Notes to the condensed consolidated financial statements

for the half-year ended 31 December 2022

Note 4 Share based payments

Performance shares

10,000,000 Class A Performance Shares and 15,000,000 Class B Performance Shares were granted during the period as follows:

Class A Performance Shares
Grant Date 12 September 2022
Vesting conditions Vest on providing continual services over 12
months from 1 August	2022
Expiry Date 12 March 2025
Anthony Giacoppo	Terrain Dynamics Pty Ltd
Number of Class A Performance Shares 5,000,000	5,000,000
Total Valuation $81,000
Expense recorded to 31 December 2022 $27,585

Class B Performance Shares
Grant Date 12 September 2022
Vesting conditions Vest on providing continual services over 24
months from 1 August 2022
Expiry Date 12 March 2025
Anthony Giacoppo	Terrain Dynamics Pty Ltd
Number of Class B Performance Shares 5,000,000	10,000,000
Total Valuation $67,500
Expense recorded to 31 December 2022 $10,777

These shares have been valued using the share price at the date of issue and taking into account the probability that the vesting conditions are met. At the date of this report, the Board has applied a 90% probability that the performance shareholders will achieve the vesting conditions for the Class A Performance Shares and a 50% probability that the performance shareholders will achieve the vesting conditions for the Class B Performance Shares.

There has been no change to the valuation methodology applied to 10,000,000 performance shares issued to employees and consultants in previous periods. The performance milestones and valuation methodology are outlined in the notes to the 30 June 2017 consolidated financial statements.

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INTERIM FINANCIAL REPORT

31 December 2022

AND CONTROLLED ENTITIES ABN 47 119 749 647

CYCLIQ GROUP LIMITED

Notes to the condensed consolidated financial statements

for the half-year ended 31 December 2022

Note 5 Earnings per share (EPS)	31 December 31 December
	2022 2021
	$ $
a. Reconciliation of earnings to profit or loss Loss for the half-year attributable to members of the parent entity Loss used in the calculation of basic and diluted EPS	(61,192) (87,813)
	(61,192) (87,813)
	31 December 31 December
	2022 2021
	No. No.
b. Weighted average number of ordinary shares outstanding during the half- year used in calculation of basic EPS	347,516,959 346,697,287
	31 December 31 December
	2022 2021
	₵ ₵
c. Earnings per share Basic and diluted EPS (cents per share)	(0.0176) (0.0253)

d. At the end of the half-year ended 31 December 2022 the Group had 233,792,586 unissued shares under options (Dec 2021: 236,614,350 ) and 7,142,857 unissued shares under warrant (Dec 2021:7,142,857).

Note 6 Trade and other receivables	31 December 30 June
	2022 2022
	$ $
Current Trade debtors Less: provision for Doubtful debts Other receivables Goods and Services Tax receivable Non-current Other receivables	12,996 15,430 (3) (3) 37,961 11,754 (6,539) 8,373
	44,415 35,544
	8,663 8,663
	8,663 8,663

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CYCLIQ GROUP LIMITED

INTERIM FINANCIAL REPORT

31 December 2022

AND CONTROLLED ENTITIES ABN 47 119 749 647

Notes to the condensed consolidated financial statements

for the half-year ended 31 December 2022

Note 7 Inventories	31 December 30 June
	2022 2022
	$ $
Finished goods	536,488 328,040
	536,488 328,040
Note 8 Prepayments	31 December 30 June
	2022 2022
	$ $
Current Manufacturing prepayments Shipping costs prepayments Other prepayments	523,837 500,278 41,301 41,301 55,286 48,945
	620,424 590,524
Note 9 Property, plant, and equipment	31 December 30 June
	2022 2022
	$ $
Computer equipment at cost Accumulated depreciation Office furniture and equipment at cost Accumulated depreciation Total property, plant, and equipment	67,110 61,393 (58,180) (57,072)
	8,930 4,321
	35,044 35,044 (28,052) (27,461)
	6,992 7,583
	15,922 11,904

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CYCLIQ GROUP LIMITED AND CONTROLLED ENTITIES ABN 47 119 749 647

INTERIM FINANCIAL REPORT

31 December 2022

Notes to the condensed consolidated financial statements

for the half-year ended 31 December 2022

Note 10 Intangible assets	31 December 30 June
	2022 2022
	$ $
Non-current Product development costs Accumulated amortisation Total Intangible assets Movement for the period Opening Balance Additions for internal developments Amortisation Foreign exchange movement Closing balance	1,816,269 1,725,430 (1,563,828) (1,458,850)
	252,441 266,580
	266,580 365,470 90,839 150,608 (111,482) (249,229) 6,504 (269)
	252,441 266,580
Note 11 Right-of-use Assets	31 December 30 June
	2022 2022
	$ $
Carrying value Cost Accumulated depreciation Carrying value Reconciliation Opening balance Additions Depreciation expense Closing balance	Premises Premises
	42,693 42,693
	(26,683) (16,010)
	16,010 26,683
	26,683 -
	- 42,693
	(10,673) (16,010)
	16,010 26,683

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INTERIM FINANCIAL REPORT

31 December 2022

AND CONTROLLED ENTITIES ABN 47 119 749 647

CYCLIQ GROUP LIMITED

Notes to the condensed consolidated financial statements

for the half-year ended 31 December 2022

Note 12 Trade and other payables	31 December 30 June
	2022 2022
	$ $
Current Unsecured Trade payables Accrued expenses Other payables	197,557 158,637 877,121 744,919 202,382 88,473
	1,277,060 992,029
Note 13 Borrowings	31 December 30 June
	2022 2022
	$ $
Current Insurance premium funding	- 41,364
	- 41,364
Note 14 Provisions	31 December 30 June
	2022 2022
	$ $
Current Provision for current employee benefits Provision for warranty claims	76,736 61,440 117,628 71,335
	194,364 132,775

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INTERIM FINANCIAL REPORT

31 December 2022

AND CONTROLLED ENTITIES ABN 47 119 749 647

CYCLIQ GROUP LIMITED

Notes to the condensed consolidated financial statements

for the half-year ended 31 December 2022

Note 15 Lease liabilities	31 December 30 June
	2022 2022
	$ $
Carrying value Current liabilities Non-current liabilities Reconciliation Opening balance Additions Interest Principal repayments Closing balance
	16,655 21,790
	- 5,531
	16,655 27,321
	27,321 -
	- 42,693
	527 1,278
	(11,193) (16,650)
	16,655 27,321

Underling assets serve as a security for the related lease liabilities A maturity analysis of future minimum lease payments is presented below:

31 December 2022 Lease payments Interest Net present value
	Lease payments due
	< 1 year 1 – 2 years 2 – 5 years Total
	$ $ $ $
	17,067 - - 17,067
	(412) - - (412)
	16,655 - - 16,655

Note 16 Issued capital	31 Dec 22 30 Jun 22	31 Dec 22 30 Jun 22
	No. No.	$ $
Fully paid ordinary shares at no par value a. Ordinary shares At the beginning of the period Shares issued during the period: Share consolidation (20:1) At reporting date	347,516,658 347,516,658	16,068,852 16,068,852
	347,516,658 6,450,339,176	16,068,852 15,568,852 - 500,000 - -
	- 500,000,000
	- (6,602,822,518)
	347,516,658 347,516,658	16,068,852 16,068,852

b. Options

At the end of the half-year ended 31 December 2022 the Group had 233,792,586 unissued shares under options (Dec 2021: 236,614,350) and 7,142,857 unissued shares under warrant (Dec 2021: 7,142,857).

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CYCLIQ GROUP LIMITED

INTERIM FINANCIAL REPORT

31 December 2022

AND CONTROLLED ENTITIES ABN 47 119 749 647

Notes to the condensed consolidated financial statements for the half-year ended 31 December 2022

Note 17 Operating Segments

a. Segment Performance

Half-Year ended 31 December 2022 Revenue ▫ Revenue Total segment revenue Total group revenue and other income Segment net profit from continuing operations before tax Reconciliation of segment loss to group loss (i) Amounts not included in segment results but reviewed by Board: ▫ Other income ▫ Administrative expenses ▫ Advertising & Marketing expenses ▫ Employee related expenses ▫ Research and development expenses ▫ Depreciation and amortisation ▫ Other operating expenses (ii) Unallocated items ▫ Share-based payments ▫ Interest and finance costs Loss before income tax	USA Australia UK Other Total
	$ $ $ $ $
	1,020,399 395,600 669,445 808,788 2,894,232
	1,020,399 395,600 669,445 808,788 2,894,232
	2,894,232
	203,883 525,889 345,016 416,830 1,491,618
	186,285
	(285,330)
	(266,358)
	(742,521)
	(11,779)
	(113,183)
	(255,983)
	(38,362)
	(19,121)
	(54,734)

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P a g e | 17

CYCLIQ GROUP LIMITED

INTERIM FINANCIAL REPORT

31 December 2022

AND CONTROLLED ENTITIES ABN 47 119 749 647

Notes to the condensed consolidated financial statements

for the half-year ended 31 December 2022

Note 17 Operating segments (cont.)

Half-Year ended 31 December 2021 Revenue ▫ Revenue Total segment revenue Total group revenue and other income Segment net profit from continuing operations before tax Reconciliation of segment loss to group loss (i) Amounts not included in segment results but reviewed by Board: ▫ Other income ▫ Administrative expenses ▫ Advertising & Marketing expenses ▫ Employee related expenses ▫ Research and development expenses ▫ Depreciation and amortisation ▫ Other operating expenses (ii) Unallocated items ▫ Share-based payments ▫ Interest and finance costs Loss before income tax	USA Australia UK	Other	Total
	$ $ $	$	$
	821,920 689,683 562,749	894,708	2,969,060
	821,920 689,683 562,749	894,708	2,969,060
			2,969,060
	370,966 311,282 253,922	403,888	1,340,058
			235,161
			(271,426)
			(67,203)
			(585,688)
			(23,034)
			(70,502)
			(333,354)
			-
			(279,720)
			(55,708)

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P a g e | 18

INTERIM FINANCIAL REPORT

31 December 2022

AND CONTROLLED ENTITIES ABN 47 119 749 647

CYCLIQ GROUP LIMITED

Notes to the condensed consolidated financial statements

for the half-year ended 31 December 2022

Note 17 Operating segments (cont.)

b. Segment Assets and Liabilities

As at 31 December 2022 Segment Assets Reconciliation of segment to group assets ▫ Unallocated assets Total assets Segment Liabilities Reconciliation of segment to group liabilities ▫ Unallocated liabilities Total liabilities As at 30 June 2022 Segment Assets Reconciliation of segment to group assets ▫ Unallocated assets Total assets Segment Liabilities Reconciliation of segment to group liabilities ▫ Unallocated liabilities Total liabilities		USA Australia UK Other	Total $ 12,996 2,533,051 2,546,047 - 1,488,079 1,488,079
		$ $ $ $
		4,582 1,776 3,006 3,632
		- - - -
		USA Australia UK Other	Total
		$ $ $ $	$
		4,615 2,978 3,040 4,795	15,428
		- - - -	2,263,830
			2,279,258
			-
			1,193,489
			1,193,489

Note 18 Commitments

There is no significant change in the Company's commitments since the year ended 30 June 2022 to date of this report.

Note 19 Contingent liabilities

There has been no change in contingent liabilities since the last annual reporting period.

Note 20 Financial Instruments

The Group’s cash, receivables, and payables are carried at the carrying value which is considered to be the same as their fair values at report date.

Note 21 Events subsequent to reporting date

There are no events of a material nature or transaction that have arisen since year end and the date of this report that has significantly affected, or may significantly affect, the Group’s operations, the results of those operations or its state of affairs.

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P a g e | 19

CYCLIQ GROUP LIMITED AND CONTROLLED ENTITIES ABN 47 119 749 647

INTERIM FINANCIAL REPORT

31 December 2022

Directors' declaration

The Directors of the Company declare that:

1. The condensed financial statements and notes, as set out on pages 4 to 19, are in accordance with the Corporations Act 2001 and:

2. (a) comply with Accounting Standard AASB 134: Interim Financial Reporting ; and

3. (b) give a true and fair view of the financial position as at 31 December 2022 and of the performance for the half-year ended on that date of the Company.

4. In the Directors' opinion there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors made pursuant to s.303(5) of the Corporations Act 2001 and is signed for and on behalf of the directors by:

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XAVIER KRIS

Non-Executive Chairman

Dated this Thursday, 16 February 2023

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P a g e | 20

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INDEPENDENT AUDITOR’S REVIEW REPORT TO THE MEMBERS OF CYCLIQ GROUP LIMITED

Conclusion

We have reviewed the accompanying half-year financial report of Cycliq Group Limited (“the Company”) and Controlled Entities (“the Consolidated Entity”) which comprises the condensed consolidated statement of financial position as at 31 December 2022, the condensed consolidated statement of profit or loss and other comprehensive income, condensed consolidated statement of changes in equity and condensed consolidated statement of cash flows for the half-year ended on that date, a summary of significant accounting policies and other selected explanatory notes, and the directors’ declaration.

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Cycliq Group Limited and Controlled Entities does not comply with the Corporations Act 2001 including:

• a. Giving a true and fair view of the Cycliq Group Limited financial position as at 31 December 2022 and of its performance for the half-year ended on that date; and

• b. Complying with Accounting Standard AASB 134: Interim Financial Reporting and Corporations Regulations 2001 .

Basis for Conclusion

We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity. Our responsibilities are further described in the Auditor’s Responsibilities for the Review of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants that are relevant to our audit of the annual financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We confirm that the independence declaration required by the Corporations Act 2001 which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s review report.

Material Uncertainty Related to Going Concern

We draw attention to Note 1.a.ii in the financial report, which indicates that the Consolidated Entity incurred a net loss of $54,734 during the half year ended 31 December 2022. As stated in Note 1.a.ii, these events or conditions, along with other matters as set forth in Note 1.a.ii, indicate that a material uncertainty exists that may cast significant doubt on the Consolidated Entity’s ability to continue as a going concern. Our conclusion is not modified in respect of this matter.

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Responsibility of the Directors for the Financial Report

The directors of the Cycliq Group Limited are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such control as the directors determine is necessary to enable the preparation of the half-year financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility for the Review of the Financial Report

Our responsibility is to express a conclusion on the half-year financial report based on our review. ASRE 2410 requires us to conclude whether we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the Consolidated Entity’s financial position as at 31 December 2022 and its performance for the half-year ended on that date, and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

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HALL CHADWICK WA AUDIT PTY LTD

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CHRIS NICOLOFF CA Director

Dated 16[th] day of February 2023 Perth, Western Australia