Announcement PDF Enlitic, Inc. Appendix 4D Half-year report 1. Company details Name of entity: ARBN: Reporting period: Previous period: Enlitic, Inc. 672 254 027 For the half-year ended 30 June 2024 For the half-year ended 30 June 2023 2. Results for announcement to the market US$ Revenues from ordinary activities down 25.0% to 204,334 Loss from ordinary activities after tax down 16.8% to (6,845,737) Loss for the half-year down 16.8% to (6,845,737) Dividends There were no dividends paid, recommended or declared during the current financial period. Comments The loss for the Group after providing for income tax amounted to US$6,845,737 (30 June 2023: US$8,226,554). Refer to the Directors' report in the attached Interim Report for discussion of the review of operations for the half-year. 3. Net tangible assets Reporting period Cents Net tangible assets per ordinary security Calculated as follows: 4.71 Previous period Cents 9.43 Group 30 Jun 2024 30 Jun 2023 US$ US$ Net assets Less: Intangibles Net tangible assets 4,070,042 (4,643) 4,065,399 5,752,431 (9,708) 5,742,723 Total ordinary shares ('common stock') issued (number) 86,298,010 60,894,964 4. Control gained over entities Not applicable. 5. Loss of control over entities Not applicable. Enlitic, Inc. Appendix 4D Half-year report 6. Dividends Current period There were no dividends paid, recommended or declared during the current financial period. Previous period There were no dividends paid, recommended or declared during the previous financial period. 7. Dividend reinvestment plans Not applicable. 8. Details of associates and joint venture entities Not applicable. 9. Foreign entities Details of origin of accounting standards used in compiling the report: The attached financial statements for the interim half-year reporting period ended 30 June 2024 have been prepared in accordance with Australian Accounting Standard AASB 134 'Interim Financial Reporting' and the Corporations Act 2001, as appropriate for for-profit oriented entities. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 'Interim Financial Reporting'. The financial statements do not include all the notes of the type normally included in annual financial statements. Accordingly, the attached financial statements are to be read in conjunction with the annual report for the year ended 31 December 2023 and any public announcements made by the Company during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001. 10. Audit qualification or review Details of audit/review dispute or qualification (if any): The financial statements were subject to a review by the auditors and the review report is attached as part of the Interim Report. An unqualified opinion has been issued with a paragraph addressing material uncertainty related to going concern. 11. Attachments Details of attachments (if any): The Interim Report of Enlitic, Inc. for the half-year ended 30 June 2024 is attached. 12. Signed Signed Darren Scotti Chief Financial Officer and Company Secretary Date: 29 August 2024 Enlitic, Inc. ARBN 672 254 027 Interim Report - 30 June 2024 Enlitic, Inc. Contents 30 June 2024 Directors' report Auditor's independence declaration Consolidated statement of profit or loss and other comprehensive income Consolidated statement of financial position Consolidated statement of changes in equity Consolidated statement of cash flows Notes to the consolidated financial statements Directors' declaration Independent auditor's review report to the members of Enlitic, Inc. 1 2 5 6 7 8 9 10 17 18 Enlitic, Inc. Directors' report 30 June 2024 The Directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'Group') consisting of Enlitic, Inc. (referred to hereafter as the 'Company' or 'parent entity') and the entities it controlled at the end of, or during, the half-year ended 30 June 2024. Directors The following persons were Directors of Enlitic, Inc. during the whole of the financial half-year and up to the date of this report, unless otherwise stated: Lawrence Gozlan - Chair Michael Sistenich Riichi Yamada Sergio Duchini Lisa Pettigrew (appointed 4 March 2024) Principal activities The Group's principal activity is to intelligently manage healthcare data using the power of artificial intelligence to expand capacity and improve clinical workflows and create a foundation for a real-world evidence medical image database for healthcare providers. Dividends There were no dividends paid, recommended or declared during the current or previous financial half-year. Review of operations The loss for the Group after providing for income tax amounted to US$6,845,737 (30 June 2023: US$8,226,554). As a result of the loss incurred for the half-year ended 30 June 2024 and the net cash outflows from operating activities for the interim period, there is a material uncertainty on whether the Group can continue as a going concern. The Directors consider that the Group will continue as a going concern, as explained in note 2 to the financial statements. Enlitic uses AI to develop software products that manage medical imaging data in radiology (such as MRI, CT scans, X-ray and ultrasound images) and licences such products to healthcare providers. Enlitic’s mission is to revolutionise healthcare by leveraging AI and data, empowering evidence-based decision-making, enhancing research, and transforming healthcare delivery. Enlitic operates in the global healthcare IT market, specifically within the radiology sub sector. The Group primarily generates revenue from a subscription-based revenue model; contracts typically have a 3-year term with a renewal mechanism. Having commenced 2024 with eleven signed customer agreements, the Group signed six customer agreements during the 6 months ended 30 June 2024, showing continued positive momentum in commercialising its products. For the 6 months ended 30 June 2024, the Group reported an increase in customer license agreement ('Subscription') revenue of 103.5% to US$183k from US$90k. There was a decrease in consultancy revenue of 88.1% to US$22k from US$183k as a result of the sale of the Company’s CXR Focal Opacity technology to Clairvo (refer Matters subsequent to the end of the financial half-year below for details). The Group has seen an increase in open pipeline of opportunities to US$63.0 million at 30 June 2024, up 11.9% from US$56.3 million at 30 June 2023(1). (1) The dollar values represent the Company’s estimate (based on initial discussions and assessments with each potential customer) of TCV ((the total contracted minimum licence revenue to be charged over the term (generally 3 years of contracts entered into with customers)) of the contract plus ancillary revenue (as applicable) of each customer pipeline opportunity if every such opportunity was to result in a signed Licence Agreement (and the Company has assumed each such Licence Agreement has a term of 3 years). There is no guarantee that any of the customer pipeline opportunities will result in any contracted clients or contracted revenue, and the dollar values indicated do not in any way represent an estimate of likely future revenue arising from those. It merely provides an indication of the potential size of the revenue opportunity presented by the customer pipeline opportunities. Operating expenses, which consist of employee expenses, marketing expenses, administration expenses, professional fees, subscriptions, travel and other expenses decreased by approximately 14.0% to US$7.1 million for the 6 months to 30 June 2024 from $8.2 million for the six months to 30 June 2023. 2 Enlitic, Inc. Directors' report 30 June 2024 Enlitic is at the forefront of managing and standardising medical imaging data in radiology through AI, a path which was previously untrodden in the healthcare industry. In these early stages of commercialising our product offering, we are creating and growing this new market with each additional client or partnership. As the Group converts its opportunity pipeline into signed customers, the number of images/studies being standardised within the market is growing which, in turn, further cements Enlitic’s position as the benchmark for imaging data standardisation. Enlitic continues its discussions with industry stakeholders, including OEMs, with a view to bringing them into the Enlitic ecosystem and helping ensure their products meet the needs of their customers. The loss before income tax expense decreased to US$6.8 million for the six months to 30 June 2024 from a loss before income tax of US$8.2 million for the six months to 30 June 2023. As a result of the loss incurred for the half-year ended 30 June 2024 and the net cash outflows from operating activities for the interim period, there is a material uncertainty on whether the Group can continue as a going concern. The Directors consider that the Group will continue as a going concern, as explained in note 2 to the financial statements. Significant changes in the state of affairs On 4 March 2024, Lisa Pettigrew was appointed as a Non-Executive Director. Lisa was granted 100,000 options with shareholder approval at the AGM. There were no other significant changes in the state of affairs of the Group during the financial half-year. Matters subsequent to the end of the financial half-year CXR Focal Opacity On 7 August 2024 the company reached an agreement to sell CXR Focal Opacity, Enlitic’s chest x-ray technology, to Clairvo Technologies Inc ('Clairvo') for a cash consideration of US$500,000. Under the terms of the agreement, Enlitic assigns its right, title and interest in CXR Focal Opacity to Clairvo and also grants Clairvo perpetual non-exclusive licenses of certain patents relevant to CXR Focal Opacity and to certain Enlitic background intellectual property as needed by Clairvo to use and practice CXR Focal Opacity. Clairvo is a wholly owned subsidiary of Marubeni Corporation, which holds approximately 12.3% of the shares in Enlitic at the date of the agreement being signed. Mr Riichi Yamada, a Non-Executive Director of Enlitic nominated by Marubeni Corporation, has not participated in any consideration or approval of the transaction or its terms in his capacity as a director of the Company. Acquisition of Laitek On 29 August 2024 the company announced that it has entered into conditional binding documentation ('SPA') to acquire 100% of the shares in Laitek, Inc. ('Laitek') for total consideration of US$4.95 million ('Proposed Acquisition'). Laitek, founded in the 1980s, is one of the major providers of tech-enabled healthcare medical imaging data migration and routing services in the United States. It offers contract-based medical imaging data migration services to customers on a reoccurring basis as well as ongoing software licensing. Per management accounts, Laitek reported US$6.8 million in revenue in FY23 derived from its direct and original equipment manufacturer ('OEM') customers and has 55 employees, based in the US and Romania. The Proposed Acquisition is subject to certain conditions, including Enlitic successfully conducting a capital raising to finance the cash acquisition consideration, and obtaining the approval of Enlitic securityholders under ASX Listing Rule 7.1 in respect of that capital raising. As a company incorporated in Delaware, securityholder approval will also be required to amend Enlitic’s constituent documents to facilitate the capital raising, and the acquisition is also conditional on obtaining this securityholder approval. There will be no changes to the Board or senior management of Enlitic as part of, or in connection with, the Proposed Acquisition. The total consideration payable for the Proposed Acquisition is US$4.95 million, which comprises, Cash consideration of US$4 million which it is proposed to be funded by the partial funds raised from the Company’s proposed equity raising. In addition, the Proposed Acquisition comprises Scrip Consideration of US$950,000 worth of Common Stock (with the number of common stock being determined by reference to the issue price under the proposed capital raising). 3 Enlitic, Inc. Directors' report 30 June 2024 The issue of Common Stock under the Scrip Consideration is conditional on the Company obtaining securityholder approval for the purposes of ASX Listing Rule 7.1. If such securityholder approval is not obtained, the Company may (at its election) do either of the following, or a combination of both: ● issue such number of Common Stock (being determined by reference to the issue price under the proposed capital raising) under its available ASX Listing Rule 7.1 capacity; or ● make a cash payment to the Sellers for the balance of the value of scrip consideration (US$950,000) not satisfied by the issue of Common Stock. To the extent any Common Stock is issued under the Scrip Consideration, it will be escrowed for 9 months from issue. Completion of the Proposed Acquisition is subject to a set of standard conditions to completion, as well as the following: ● the Company raising not less than US$4 million under a fundraising, and that fundraising being approved by securityholders; and ● an amendment to the Company’s certificate of incorporation increasing the amount of authorized stock available for issuance in connection with the fundraising being approved by securityholders. Capital Raising On 29 August 2028 the Company requested a trading halt for the purposes of undertaking a proposed equity raising, part of which is in connection with the proposed acquisition of the shares in Laitek described above. No other matter or circumstance has arisen since 30 June 2024 that has significantly affected, or may significantly affect the Group's operations, the results of those operations, or the Group's state of affairs in future financial years. Auditor's independence declaration A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out immediately after this Directors' report. This report is made in accordance with a resolution of Directors, pursuant to section 306(3)(a) of the Corporations Act 2001. On behalf of the Directors Sergio Duchini Director Michael Sistenich Director 29 August 2024 4 AUDITOR’S INDEPENDENCE DECLARATION As lead auditor for the review of the financial report of Enlitic, Inc. and its controlled entities for the half-year ended 30 June 2024, I declare that, to the best of my knowledge and belief, there have been no contraventions of: (i) the auditor independence requirements of the Australian Professional Accounting Bodies in relation to the review; and (ii) any applicable code of professional conduct in relation to the review. RSM AUSTRALIA PARTNERS M PARAMESWARAN Partner Melbourne, Victoria Dated: 29 August 2024 5 Enlitic, Inc. Consolidated statement of profit or loss and other comprehensive income For the half-year ended 30 June 2024 Note Group 30 Jun 2024 30 Jun 2023 US$ US$ Revenue 4 204,334 272,566 Other income Interest revenue calculated using the effective interest method 5 1,778 78,238 31,058 6 (4,289,257) (123,041) (57,201) (1,436,295) (4,585) (426,863) (1,092) (259,205) (532,548) - (5,212,244) (160,838) (242,607) (1,665,089) (3,931) (451,901) (3,970) (262,851) (53,145) (470,730) (2,872) (6,845,737) (8,226,554) - - (6,845,737) (8,226,554) Items that may be reclassified subsequently to profit or loss Foreign currency translation (26,633) (39,432) Other comprehensive income for the half-year, net of tax (26,633) (39,432) (6,872,370) (8,265,986) Cents Cents Expenses Employee benefits expense Marketing Depreciation and amortisation expense Professional fees Administration expenses Subscriptions Exchange loss Travel Fair value loss on derivatives Other expenses Finance costs 6 Loss before income tax expense Income tax expense Loss after income tax expense for the half-year Other comprehensive income Total comprehensive income for the half-year Basic earnings per share Diluted earnings per share 12 12 (7.93) (7.93) (2,667.43) (2,667.43) The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes 6 Enlitic, Inc. Consolidated statement of financial position As at 30 June 2024 Note Group 30 Jun 2024 31 Dec 2023 US$ US$ Assets Current assets Cash and cash equivalents Trade and other receivables Contract assets Prepayments Total current assets 4,295,241 62,667 24,977 411,456 4,794,341 11,091,059 66,074 10,473 272,269 11,439,875 89,805 4,643 94,448 126,739 7,175 133,914 4,888,789 11,573,789 Current liabilities Trade and other payables Total current liabilities 818,747 818,747 633,426 633,426 Total liabilities 818,747 633,426 4,070,042 10,940,363 Non-current assets Property, plant and equipment Intangibles Total non-current assets 7 Total assets Liabilities Net assets Equity Issued capital Reserves Accumulated losses 8 9 Total equity 112,752,181 112,750,132 3,294,188 3,320,821 (111,976,327) (105,130,590) 4,070,042 10,940,363 The above consolidated statement of financial position should be read in conjunction with the accompanying notes 7 Enlitic, Inc. Consolidated statement of changes in equity For the half-year ended 30 June 2024 Group Issued capital US$ Balance at 1 January 2023 58,759,786 3,155,003 (89,579,150) (27,664,361) Loss after income tax expense for the half-year Other comprehensive income for the half-year, net of tax - (39,432) (8,226,554) - (8,226,554) (39,432) Total comprehensive income for the half-year - (39,432) (8,226,554) (8,265,986) Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs Share-based payments 41,550,331 - 132,447 - 41,550,331 132,447 Balance at 30 June 2023 100,310,117 3,248,018 (97,805,704) 5,752,431 Issued capital US$ Reserves US$ Accumulated losses Total equity US$ US$ Group Balance at 1 January 2024 Accumulated losses Total equity US$ US$ Reserves US$ 112,750,132 3,320,821 (105,130,590) 10,940,363 Loss after income tax expense for the half-year Other comprehensive income for the half-year, net of tax - (26,633) (6,845,737) - (6,845,737) (26,633) Total comprehensive income for the half-year - (26,633) (6,845,737) (6,872,370) 2,049 - - 2,049 3,294,188 (111,976,327) 4,070,042 Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs (note 8) Balance at 30 June 2024 112,752,181 The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes 8 Enlitic, Inc. Consolidated statement of cash flows For the half-year ended 30 June 2024 Note Group 30 Jun 2024 30 Jun 2023 US$ US$ Cash flows from operating activities Receipts from customers (inclusive of GST) Payments to suppliers and employees (inclusive of GST) 193,237 (7,026,752) 246,228 (7,259,544) Interest received Interest and other finance costs paid (6,833,515) 78,238 - (7,013,316) (2,872) Net cash used in operating activities (6,755,277) (7,016,188) (18,188) 2,231 (352) - (15,957) (352) 2,049 - 11,589,837 (204,777) 2,049 11,385,060 Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at the beginning of the financial half-year Effects of exchange rate changes on cash and cash equivalents (6,769,185) 11,091,059 (26,633) 4,368,520 2,215,777 (39,432) Cash and cash equivalents at the end of the financial half-year 4,295,241 6,544,865 Cash flows from investing activities Payments for property, plant and equipment Proceeds from disposal of property, plant and equipment 7 Net cash used in investing activities Cash flows from financing activities Proceeds from issue of shares Repayment of lease liabilities 8 Net cash from financing activities The above consolidated statement of cash flows should be read in conjunction with the accompanying notes 9 Enlitic, Inc. Notes to the consolidated financial statements 30 June 2024 Note 1. General information The financial statements cover Enlitic, Inc. as a Group consisting of Enlitic, Inc. ('Company' or 'parent entity') and the entities it controlled at the end of, or during, the half-year (together referred to in these financial statements as the 'Group'). The financial statements are presented in US Dollars, which is Enlitic, Inc.'s functional and presentation currency. Enlitic, Inc. is a listed public company limited by shares, incorporated and domiciled in United States of America. Its registered office and principal place of business are: Registered office Principal place of business 1209 Orange Street City of Wilmington County of New Castle Delaware, USA 19801 2510 East Harmony Road Suite 202 Fort Collins Colorado, USA 80528 A description of the nature of the Group's operations and its principal activities are included in the Directors' report, which is not part of the financial statements. The financial statements were authorised for issue, in accordance with a resolution of Directors, on 29 August 2024. The Directors have the power to amend and reissue the financial statements. Note 2. Material accounting policy information These general purpose financial statements for the interim half-year reporting period ended 30 June 2024 have been prepared in accordance with Australian Accounting Standard AASB 134 'Interim Financial Reporting' and the Corporations Act 2001, as appropriate for for-profit oriented entities. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 'Interim Financial Reporting'. These general purpose financial statements do not include all the notes of the type normally included in annual financial statements. Accordingly, these financial statements are to be read in conjunction with the annual report for the year ended 31 December 2023 and any public announcements made by the Company during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001. The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, unless otherwise stated. New or amended Accounting Standards and Interpretations adopted The Group 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. The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial performance or position of the Group during the financial half-year ended 30 June 2024 and are not expected to have a significant impact for the full financial year ending 31 December 2024. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. Going concern The financial statements have been prepared on the going concern basis, which contemplates continuity of normal business activities and the realisation of assets and discharge of liabilities in the normal course of business. As disclosed in the financial statements, the Group incurred a net loss after tax of $6,845,737 and had net cash outflows from operating activities of $6,755,277 for the half-year ended 30 June 2024. These factors indicate a material uncertainty which may cast significant doubt over the ability of the Group to continue as a going concern and therefore whether it will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report. 10 Enlitic, Inc. Notes to the consolidated financial statements 30 June 2024 Note 2. Material accounting policy information (continued) The Directors believe that there are reasonable grounds to believe that the Group will be able to continue as a going concern as the Directors believe the Group will have the ability to raise funds from existing shareholders and new investors to support working capital and execute its strategic growth initiatives. Accordingly, the Directors believe that the Group will be able to continue as a going concern and that it is appropriate to adopt the going concern basis in the preparation of the financial report. The financial report does not include any adjustments relating to the amounts or classification of recorded assets or liabilities that might be necessary if the Group does not continue as a going concern. Note 3. Operating segments Identification of reportable operating segments The Group is organised into one operating segment as the Group operated mainly in the United States of America and in one industry being to intelligently manage healthcare data using the power of artificial intelligence to expand capacity and improve clinical workflows and create a foundation for a real-world evidence medical image database for healthcare providers. This assessment is based on the internal reports that are reviewed and used by the Board of Directors (who are identified as the Chief Operating Decision Makers ('CODM')) in assessing performance and in determining the allocation of resources. Accordingly, the information provided reflects the one operating segment. The CODM reviews EBITDA (earnings before interest, tax, depreciation and amortisation). The accounting policies adopted for internal reporting to the CODM are consistent with those adopted in the financial statements. The information reported to the CODM is on a monthly basis. A reconciliation of EBITDA to statutory loss is as follows: Group 30 Jun 2024 30 Jun 2023 US$ US$ EBITDA Add back/deduct: Income tax expense Finance costs Interest revenue calculated using the effective interest method Depreciation and amortisation expense Loss for the period (6,866,774) (8,012,133) 78,238 (57,201) (2,872) 31,058 (242,607) (6,845,737) (8,226,554) Note 4. Revenue Group 30 Jun 2024 30 Jun 2023 US$ US$ Subscription Consultancy fees 182,503 21,831 89,678 182,888 Revenue 204,334 272,566 11 Enlitic, Inc. Notes to the consolidated financial statements 30 June 2024 Note 4. Revenue (continued) Disaggregation of revenue The disaggregation of revenue from contracts with customers is as follows: Group 30 Jun 2024 30 Jun 2023 US$ US$ Geographical regions United States of America Europe Japan Timing of revenue recognition Services transferred over time 66,666 89,500 48,168 25,000 51,834 195,732 204,334 272,566 204,334 272,566 Note 5. Other income Group 30 Jun 2024 30 Jun 2023 US$ US$ Net gain on disposal of assets 1,778 - Note 6. Expenses Group 30 Jun 2024 30 Jun 2023 US$ US$ Loss before income tax includes the following specific expenses: Employee benefits Wages and salaries Employee benefits Share-based payment expense Payroll taxes 3,605,610 424,512 259,135 4,293,398 478,344 132,447 308,055 Employee benefits expensed 4,289,257 5,212,244 - 2,872 Finance costs Interest and finance charges paid/payable on lease liabilities 12 Enlitic, Inc. Notes to the consolidated financial statements 30 June 2024 Note 7. Property, plant and equipment Group 30 Jun 2024 31 Dec 2023 US$ US$ Non-current assets Leasehold improvements - at cost Less: Accumulated depreciation 65,010 (65,010) - 65,010 (65,010) - Furniture and fixtures - at cost Less: Accumulated depreciation 93,630 (82,820) 10,810 101,849 (83,055) 18,794 Computer equipment - at cost Less: Accumulated depreciation 2,423,664 (2,344,669) 78,995 2,407,230 (2,299,285) 107,945 89,805 126,739 Reconciliations Reconciliations of the written down values at the beginning and end of the current financial half-year are set out below: Leasehold Furniture and improvements fixtures US$ US$ Group Computer equipment US$ Total US$ Balance at 1 January 2024 Additions Disposals Depreciation expense - 18,794 (453) (7,531) 107,945 18,188 (47,138) 126,739 18,188 (453) (54,669) Balance at 30 June 2024 - 10,810 78,995 89,805 Group 31 Dec 2023 30 Jun 2024 Shares US$ 31 Dec 2023 US$ Note 8. Issued capital Class of shares 30 Jun 2024 Shares Ordinary shares ('common stock') - fully paid 86,298,010 86,279,385 112,752,181 112,750,132 Issue price US$ Movements in ordinary share capital Details Date Shares Balance Issued on exercise of options Issued on exercise of options Issued on exercise of options 1 January 2024 1 January 2024 14 January 2024 5 February 2024 86,279,385 2,000 1,000 15,625 Balance 30 June 2024 86,298,010 13 US$0.11 US$0.11 US$0.11 112,750,132 220 110 1,719 112,752,181 Enlitic, Inc. Notes to the consolidated financial statements 30 June 2024 Note 9. Reserves Group 30 Jun 2024 31 Dec 2023 US$ US$ Foreign currency reserve Share-based payments reserve 221,294 3,072,894 247,927 3,072,894 3,294,188 3,320,821 Foreign currency reserve The reserve is used to recognise exchange differences arising from the translation of the financial statements of foreign operations to US Dollars. It is also used to recognise gains and losses on hedges of the net investments in foreign operations. Share-based payments reserve The reserve is used to recognise the value of equity benefits provided to employees and Directors as part of their remuneration, and other parties as part of their compensation for services. Movements in reserves Movements in each class of reserve during the current financial half-year are set out below: Foreign currency reserve US$ Group Share-based payments reserve US$ Total US$ Balance at 1 January 2024 Foreign currency translation Share-based payments 247,927 (26,633) - 3,072,894 - 3,320,821 (26,633) - Balance at 30 June 2024 221,294 3,072,894 3,294,188 Note 10. Dividends There were no dividends