Announcement PDF Ai-Media Technologies Limited Appendix 4D Half-year report 1. Company details Name of entity: ABN: Reporting period: Previous period: Ai-Media Technologies Limited 12 122 058 708 For the half-year ended 31 December 2024 For the half-year ended 31 December 2023 2. Results for announcement to the market $'000 Revenues from ordinary activities down 2.9% to 31,787 Profit before interest, tax, depreciation and amortisation (EBITDA) down (64.6%) to 664 Loss from ordinary activities after tax attributable to the owners of AiMedia Technologies Limited up 120.1% to (2,661) Loss for the half-year attributable to the owners of Ai-Media Technologies Limited up 120.1% to (2,661) Dividends There were no dividends paid, recommended or declared during the current financial period. Comments Revenue for the period was $31,787,000, down 2.9% from the prior half-year (31 December 2023: $32,727,000 ). Decrease in revenue was due to an acceleration in the decline of the labour-intensive legacy services business, while higher margin technology-based Software as Service ('SaaS') revenue continues to grow. EBITDA for the Group was a profit of $664,000 down 64.6% from the prior half-year (31 December 2023: profit of $1,877,000). Decrease in EBITDA was driven by one-off restructuring costs, additional investment into product development and go to market resources. EBITDA is a financial measure which is not prescribed by the Australian Accounting Standards (AASBs) and represents the profit under AASBs adjusted for specific items. The directors consider EBITDA to be one of the key financial measures of the Group. The loss for the Group after providing for income tax amounted to $2,661,000 an increase of 120.1% from last half-year (31 December 2023: loss of $1,209,000). Refer to the attached Directors' report section for further explanation. Ai-Media Technologies Limited Appendix 4D Half-year report The following table summarises key reconciling items between statutory loss after income tax and EBITDA: Consolidated 31 Dec 2024 31 Dec 2023 $'000 $'000 Revenue Less: Direct employee costs Less: Other direct costs including inventory expenses 31,787 (7,716) (2,676) 32,727 (9,569) (2,672) Gross Profit* Less: Indirect costs or overheads Less: Income tax 21,395 (22,681) (1,375) 20,486 (21,015) (680) Loss after income tax expense/benefit Add: Finance costs Less: Income tax expense/(benefit) Less: Interest income (2,661) 15 1,375 (53) (1,209) 296 680 (129) Earnings before interest and tax (EBIT) Add: Depreciation and amortisation (1,324) 1,988 (362) 2,239 664 1,877 EBITDA * Not all allocation of indirect costs or overheads to direct employee costs and other direct costs. 3. Net tangible assets Reporting period Cents Net tangible assets per ordinary security 9.04 Previous period Cents 8.58 The net tangible assets calculation includes rights-of-use assets of $376,000 (31 Dec 2023: $653,008) and the corresponding lease liabilities of $401,000 (31 Dec 2023: $701,496). 4. Control gained over entities Not applicable. 5. Loss of control over entities Not applicable. 6. Dividends Current period There were no dividends paid, recommended or declared during the current financial period. Previous period There were no dividends paid, recommended or declared during the previous financial period. Ai-Media Technologies Limited Appendix 4D Half-year report 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: Not applicable. 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. 11. Attachments Details of attachments (if any): The Interim Report of Ai-Media Technologies Limited for the half-year ended 31 December 2024 is attached. 12. Signed As authorised by the Board of Directors. Signed ___________________________ Anthony Abrahams Director and Chief Executive Officer Date: 27 February 2025 Ai-Media Technologies Limited ABN 12 122 058 708 Interim Report - 31 December 2024 Ai-Media Technologies Limited Contents 31 December 2024 Directors' report Auditor's independence declaration Condensed consolidated statement of profit or loss and other comprehensive income Condensed consolidated statement of financial position Condensed consolidated statement of changes in equity Condensed consolidated statement of cash flows Notes to the condensed consolidated financial statements Directors' declaration Independent auditor's review report to the members of Ai-Media Technologies Limited 1 2 4 5 6 7 8 9 17 18 Ai-Media Technologies Limited Directors' report 31 December 2024 The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'Group') consisting of Ai-Media Technologies Limited (referred to hereafter as the 'Company' or 'parent entity') and the entities it controlled at the end of, or during, the half-year ended 31 December 2024. Directors The following persons were directors of Ai-Media Technologies Limited during the whole of the financial half-year and up to the date of this report, unless otherwise stated: John Martin - Non-Executive Director and Chair Anthony Abrahams - Executive Director and Chief Executive Officer Alison Loat - Non-Executive Director Cheryl Hayman - Non-Executive Director Brent Cubis - Non-Executive Director (appointed on 1 July 2024) Otto Berkes - Non-Executive Director (appointed on 25 October 2024) Brad Bender - Non-Executive Director (appointed on 25 October 2024) Principal activities Ai-Media Technologies Limited (Ai-Media or Company) (ASX: AIM), is a global provider of technology-driven captioning, transcription and translation services. Review of operations The loss for the Group after providing for income tax amounted to $2,661,000 (31 December 2023: $1,209,000). A summary of the results for the half-year is as follows: Revenue from operating activities Profit before interest, taxation, depreciation and amortisation (EBITDA) Profit/(loss) after tax from ordinary activities 31 Dec 2024 $'000 31 Dec 2023 $'000 Change $'000 Change % 31,787 32,727 (940) (2.9%) 664 (2,661) 1,877 (1,209) (1,213) (1,452) (64.6%) 120.1% EBITDA is a financial measure which is not prescribed by the Australian Accounting Standards (AASBs) and represents the profit under AASBs adjusted for specific items. The directors consider EBITDA to be one of the key financial measures of the Group. Technology and innovation remain at the forefront of Ai-Media’s strategy. The unique combination of a hardware and software offering has proven effective in embedding LEXI (AI based captioning solution) into the customers workflow, higher margin technology revenue continues to increase as the human captioning services business declines. Investment has been made into developing innovative products to expand LEXI capabilities with a focus on overseas markets, North America, EMEA and Asia, which have shown a strong demand for technology services and the group has prioritised investment into these regions. Investment has been balanced by cost vigilance and rationalising costs in services and operating expenses. As at 31 December 2024, the consolidated statement of financial position reflects a net asset position of $77,219,000 (30 June 2024: $75,913,000). The directors have assessed that based on the Group’s position it is appropriate to prepare the financial report on a going concern basis. For further information, refer to note 2. 2 Ai-Media Technologies Limited Directors' report 31 December 2024 The following table summarises key reconciling items between statutory loss after income tax and EBITDA: Consolidated 31 Dec 2024 31 Dec 2023 $'000 $'000 Revenue Less: Direct employee costs Less: Other direct costs including inventory expenses 31,787 (7,716) (2,676) 32,727 (9,569) (2,672) Gross Profit* Less: Indirect costs or overheads Less: Income tax 21,395 (22,681) (1,375) 20,486 (21,015) (680) Loss after income tax expense/benefit Add: Finance costs Less: Income tax expense/(benefit) Less: Interest income (2,661) 15 1,375 (53) (1,209) 296 680 (129) Earnings before interest and tax (EBIT) Add: Depreciation and amortisation (1,324) 1,988 (362) 2,239 664 1,877 EBITDA * Not all allocation of indirect costs or overheads to direct employee costs and other direct costs. EBITDA for the Group was a profit of $664,000 down 64.6% from the prior half-year (31 December 2023: profit of $1,877,000). Decrease in EBITDA was driven by one-off restructuring costs, additional investment into product development and go to market resources. Significant changes in the state of affairs There were no 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 No matter or circumstance has arisen since 31 December 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. Rounding of amounts The Company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities and Investments Commission, relating to 'rounding-off'. Amounts in this report have been rounded off in accordance with that Corporations Instrument to the nearest thousand dollars, or in certain cases, the nearest dollar. 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 ___________________________ Anthony Abrahams Director and Chief Executive Officer 27 February 2025 3 Deloitte Touche Tohmatsu ABN 74 490 121 060 8 Parramatta Square 10 Darcy Street Parramatta NSW 2150 Australia Phone: +61 2 9840 7000 www.deloitte.com.au 27 February 2025 The Board of Directors Ai-Media Technologies Limited Level 1, 103 Miller Street North Sydney, NSW 2060 Dear Board Members, Auditor’s Independence Declaration to Ai-Media Technologies Limited In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration of independence to the directors of Ai-Media Technologies Limited. As lead audit partner for the review of the half year financial report of Ai-Media Technologies Limited for the half year ended 31 December 2024, 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, DELOITTE TOUCHE TOHMATSU Vincent Snijders Partner Chartered Accountants 4 Ai-Media Technologies Limited Condensed consolidated statement of profit or loss and other comprehensive income For the half-year ended 31 December 2024 Note Revenue 4 Consolidated 31 Dec 2024 31 Dec 2023 $'000 $'000 31,787 32,727 53 129 (992) (21,458) (3,098) (1,560) (1,988) (1,982) (494) (206) (42) (1,291) (15) (999) (21,166) (3,396) (1,581) (2,239) (1,843) (491) (314) (36) (1,024) (296) Loss before income tax expense (1,286) (529) Income tax expense (1,375) (680) Loss after income tax expense for the half-year attributable to the owners of AiMedia Technologies Limited (2,661) (1,209) Items that may be reclassified subsequently to profit or loss Foreign currency translation 3,967 (1,994) Other comprehensive income for the half-year, net of tax 3,967 (1,994) Total comprehensive income for the half-year attributable to the owners of AiMedia Technologies Limited 1,306 (3,203) Interest revenue calculated using the effective interest method Expenses Cost of inventories consumed Employee benefits expense Outsourcing and contractor expenses Information technology related expenses Depreciation and amortisation expense Professional and consulting expenses Business development expenses Occupancy expenses Impairment of receivables Other expenses Finance costs 5 5 Other comprehensive income Cents Basic loss per share Diluted loss per share 14 14 (1.27) (1.27) Cents (0.58) (0.58) The above condensed consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes 5 Ai-Media Technologies Limited Condensed consolidated statement of financial position As at 31 December 2024 Note Consolidated 31 Dec 2024 30 Jun 2024 $'000 $'000 Assets Current assets Cash and cash equivalents Trade and other receivables Contract assets Inventories Term deposits Income tax receivable Total current assets 14,162 12,841 802 2,370 166 30,341 10,928 12,164 798 2,418 166 286 26,760 4,712 376 58,340 4,936 68,364 4,351 501 56,236 5,292 66,380 98,705 93,140 8,250 6,977 418 148 313 2,007 18,113 7,371 4,320 241 82 2,093 14,107 253 2,781 339 3,373 291 2,525 304 3,120 Total liabilities 21,486 17,227 Net assets 77,219 75,913 110,248 13,193 (46,222) 110,248 9,226 (43,561) 77,219 75,913 6 Non-current assets Property, plant and equipment Right-of-use assets Intangibles Deferred tax assets Total non-current assets 7 Total assets Liabilities Current liabilities Trade and other payables Contract liabilities Borrowings Lease liabilities Income tax Provisions Total current liabilities 8 9 10 Non-current liabilities Lease liabilities Deferred tax Provisions Total non-current liabilities 10 Equity Issued capital Reserves Accumulated losses 11 Total equity The above condensed consolidated statement of financial position should be read in conjunction with the accompanying notes 6 Ai-Media Technologies Limited Condensed consolidated statement of changes in equity For the half-year ended 31 December 2024 Issued capital $'000 Consolidated Balance at 1 July 2023 Reserves $'000 Accumulated Total equity losses $'000 $'000 110,098 9,245 (42,220) 77,123 Loss after income tax expense for the half-year Other comprehensive income for the half-year, net of tax - (1,994) (1,209) - (1,209) (1,994) Total comprehensive income for the half-year - (1,994) (1,209) (3,203) 150 (150) - - 110,248 7,101 (43,429) 73,920 Transactions with owners in their capacity as owners: Conversion of Restricted Share Units (), (note 11) Balance at 31 December 2023 Issued capital $'000 Consolidated Balance at 1 July 2024 Reserves $'000 Accumulated Total equity losses $'000 $'000 110,248 9,226 (43,561) 75,913 Loss after income tax expense for the half-year Other comprehensive income for the half-year, net of tax - 3,967 (2,661) - (2,661) 3,967 Total comprehensive income for the half-year - 3,967 (2,661) 1,306 110,248 13,193 (46,222) 77,219 Balance at 31 December 2024 The above condensed consolidated statement of changes in equity should be read in conjunction with the accompanying notes 7 Ai-Media Technologies Limited Condensed consolidated statement of cash flows For the half-year ended 31 December 2024 Consolidated 31 Dec 2024 31 Dec 2023 $'000 $'000 Cash flows from operating activities Receipts from customers (inclusive of GST) Payments to suppliers and employees (inclusive of GST) 37,890 (34,337) 38,538 (34,529) Net cash from operating activities (inclusive of GST) before interest and income taxes payments 3,553 4,009 Interest received Interest and other finance costs paid Income taxes paid 53 (15) (237) 129 (287) (188) Net cash from operating activities 3,354 3,663 Cash flows from investing activities Payment relating to acquisitions Payments for property, plant and equipment Payments for intangibles (501) (48) (8,130) (324) (249) Net cash used in investing activities (549) (8,703) Cash flows from financing activities Payment of lease liabilities (261) (100) Net cash used in financing activities (261) (100) 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 2,544 10,928 690 (5,140) 16,983 (175) Cash and cash equivalents at the end of the financial half-year 14,162 11,668 The above condensed consolidated statement of cash flows should be read in conjunction with the accompanying notes 8 Ai-Media Technologies Limited Notes to the condensed consolidated financial statements 31 December 2024 Note 1. General information The financial statements cover Ai-Media Technologies Limited as a group consisting of Ai-Media Technologies Limited ('Company' or 'parent entity') and the entities it controlled at the end of, or during, the half-year (referred to in these financial statements as the 'Group'). The financial statements are presented in Australian dollars, which is Ai-Media Technologies Limited's functional and presentation currency. Ai-Media Technologies Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business are: Registered office Principal place of business Level 20 15 William Street Melbourne VIC 3000 Level 1 103 Miller Street North Sydney NSW 2060 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 27 February 2025. Note 2. Material accounting policy information These general purpose financial statements for the interim half-year reporting period ended 31 December 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 30 June 2024 and any public announcements made by the Company during the interim reporting period in accordance with the continuous disclosure requirements arising under Australian Securities Exchange Listing Rules and the Corporations Act 2001. Basis of preparation The condensed consolidated financial statements have been prepared on the basis of historical cost, except for the revaluation of certain non-current assets and financial instruments. Cost is based on the fair values of the consideration given in exchange for assets. All amounts are presented in Australian dollars, unless otherwise noted. The condensed consolidated financial statements have been prepared on the basis of historical cost, except for the revaluation of certain non-current assets and financial instruments. Cost is based on the fair values of the consideration given in exchange for assets. All amounts are presented in Australian dollars, unless otherwise noted. Comparative information Comparative statement of profit or loss and comprehensive income have been realigned to the current half-year presentation. There is no net effect on profit or loss for the comparative period. 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 31 December 2024 and are not expected to have significant impact for the full financial year ending 30 June 2025. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. 9 Ai-Media Technologies Limited Notes to the condensed consolidated financial statements 31 December 2024 Note 2. Material accounting policy information (continued) Going concern The financial statements have been prepared on the going concern basis which contemplates the continuity of normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business and assumes the Group will have sufficient cash resources to pay their debts as and when they become due and payable for at least 12 months from the date of signing the financial statements. The consolidated statement of profit or loss and other comprehensive income for the half-year ended 31 December 2024 reflects a net loss after income tax of $2,661,000 (31 December 2023: net loss after income tax of $1,209,000) and the statement of cash flows reflects net cash inflows from operating activities of $3,354,000 (31 December 2023: inflows of $3,663,000). As at 31 December 2024, the statement of financial position reflects a net asset position of $77,219,000 (30 June 2024: $75,913,000) and a net current asset position of $12,228,000 (30 June 2024: $12,653,000). While the Group continues to experience losses it is taking the necessary action to grow revenue sustainably and ensure that it will become profitable in the near future. Based upon the growth of the business achieved to date, positive operating cash inflows, sufficient cash reserves at the reporting date and after reviewing forecasts and projections prepared for the business, the directors consider that it is appropriate to prepare the financial statements on the going concern basis. Note 3. Operating segments Identification of reportable operating segments The Group is organised into three operating segments based on geographical locations: Australia, New Zealand, Singapore, and Malaysia (APAC); North America (including Canada and the United States of America); and the United Kingdom (EMEA). The Chief Operating Decision Makers (CODM) have reviewed and redefined these segments. Previously, the segments were Australia and New Zealand (ANZ), North America (including Canada and the United States of America), and Rest of the World (ROW) (including the United Kingdom, Singapore, and Malaysia). The Group's operating segments have been updated to reflect the organisation's strategic focus and growth objectives. These operating segments are based on the internal reports that are reviewed and used by the Board of Directors (who are identified as the CODM) in assessing performance and in determining the allocation of resources. There is no aggregation of operating segments. 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. The CODM does not regularly review segment assets and segment liabilities. Refer to the statement of financial position for the assets and liabilities of the Group. Operating segment information Consolidated - 31 Dec 2024 Revenue Sales to external customers Total revenue EBITDA Depreciation and amortisation Interest revenue Finance costs Loss before income tax expense Income tax expense Loss after income tax expense APAC $'000 North America $'000 EMEA $'000 Corporate $'000 Total $'000 8,713 8,713 20,069 20,069 3,005 3,005 - 31,787 31,787 2,638 5,741 (74) (7,641) 664 (1,988) 53 (15) (1,286) (1,375) (2,661) 10 Ai-Media Technologies Limited Notes to the condensed consolidated financial statements 31 December 2024 Note 3. Operating segments (continued) Consolidated - 31 Dec 2023 Revenue Sales to external customers Total revenue EBITDA Depreciation and amortisation Interest revenue Finance costs Loss before income tax expense Income tax expense Loss after income tax expense APAC $'000 North America $'000 EMEA $'000 Corporate $'000 Total $'000 9,422 9,422 21,092 21,092 2,213 2,213 - 32,727 32,727 2,614 6,645 (261) (7,121) 1,877 (2,239) 129 (296) (529) (680) (1,209) Note 4. Revenue Consolidated 31 Dec 2024 31 Dec 2023 $'000 $'000 Revenue 31,787 32,727 Disaggregation of revenue The disaggregation of revenue from contracts with customers is as follows: Consolidated 31 Dec 2024 31 Dec 2023 $'000 $'000 Major product lines Services* Technology* Timing of revenue recognition Goods and services transferred at a point in time Services transferred over time * 14,250 17,537 17,113 15,614 31,787 32,727 11,301 20,486 9,330 23,397 31,787 32,727 Services revenue encompasses revenue delivered by human or hybrid workflows, hybrid includes both human and technology delivery revenue. Technology revenue include revenue from hardware, software and support services. 11 Ai-Media Technologies Limited Notes to the condensed consolidated financial statements 31 December 2024 Note 5. Expenses Consolidated 31 Dec 2024 31 Dec 2023 $'000 $'000 Loss before income tax includes the following specific expenses: Depreciation Buildings Leasehold improvements Plant and equipment Buildings - right-of-use 34 14 339 146 34 30 268 111 Total depreciation 533 443 Amortisation Development Intellectual property Customer contracts Software 496 395 415 149 752 401 421 222 Total amortisation 1,455 1,796 Total depreciation and amortisation 1,988 2,239 Finance costs Interest and finance charges paid/payable on borrowings Interest and finance charges paid/payable on lease liabilities Interest on other payables from acquisitions 6 9 - 146 9 141 Finance costs expensed 15 296 Leases Short-term lease payments included in office expenses 163 176 Superannuation expense Defined contribution superannuation expense 943 978 Note 6. Trade and other receivables Consolidated 31 Dec 2024 30 Jun 2024 $'000 $'000 Current assets Trade receivables Less: Allowance for expected credit losses Other receivables Prepayments Security deposits 12 10,606 (133) 10,473 10,789 (126) 10,663 96 2,129 143 96 1,253 152 12,841 12,164 Ai-Media Technologies Limited Notes to the condensed consolidated financial statements 31 December 2024 Note 6. Trade and other receivables (continued) Allowance for expected credit losses The ageing of the receivables and allowance for expected credit losses provided for above are as follows: Carrying amount 31 Dec 2024 30 Jun 2024 $'000 $'000 Consolidated Not overdue 0 to 3 months overdue Over 3 months overdue Allowance for expected credit losses 31 Dec 2024 30 Jun 2024 $'000 $'000 6,340 3,834 432 7,125 3,323 341 19 89 25 22 74 30 10,606 10,789 133 126 Note 7. Intangibles Consolidated 31 Dec 2024 30 Jun 2024 $'000 $'000 Non-current assets Goodwill - at cost 47,985 45,040 Development - at cost Less: Accumulated amortisation 11,750 (10,343) 1,407 11,677 (9,838) 1,839 Intellectual property - at cost Less: Accumulated amortisation 9,084 (3,447) 5,637 8,548 (2,863) 5,685 Brands and trademarks - at cost 306 287 Customer contracts - at cost Less: Accumulated amortisation 4,286 (2,896) 1,390 4,023 (2,303) 1,720 Software - at cost Less: Accumulated amortisation 3,290 (1,675) 1,615 3,122 (1,457) 1,665 58,340 56,236 Reconciliations Reconciliations of the written down values at the beginning and end of the current financial half-year are set out below: Intellectual Brands and property trademarks $'000 $'000 Customer contracts $'000 Goodwill $'000 Development $'000 Balance at 1 July 2024 Additions Exchange differences Amortisation expense 45,040 2,945 - 1,840 48 15 (496) 5,685 347 (395) 287 19 - 1,719 86 (415) 1,665 99 (149) 56,236 48 3,511 (1,455) Balance at 31 December 2024 47,985 1,407 5,637 306 1,390 1,615 58,340 Consolidated 13 Software $'000 Total $'000 Ai-Media Technologies Limited Notes to the condensed consolidated financial statements 31 December 2024 Note 8. Contract liabilities Consolidated 31 Dec 2024 30 Jun 2024 $'000 $'000 Current liabilities Contract liabilities 6,977 4,320 4,320 13,864 (11,477) 270 3,917 10,001 (9,654) 56 6,977 4,320 Reconciliation Reconciliation of the values at the beginning and end of the current and previous financial half-year are set out below: Opening balance Billings during the period Transfer to revenue Foreign exchange Closing balance Note 9. Borrowings Consolidated 31 Dec 2024 30 Jun 2024 $'000 $'000 Current liabilities Insurance premium funding loan 418 - Insurance premium funding loan The premium funding loan has a term of 10 monthly payments, with the final payment due 30 August 2025 with an interest rate of 5.29%. Note 10. Provisions Consolidated 31 Dec 2024 30 Jun 2024 $'000 $'000 Current liabilities Annual leave Long service leave Other provisions Non-current liabilities Long service leave Lease make good 1,235 572 200 1,330 531 232 2,007 2,093 315 24 280 24 339 304 2,346 2,397 Other provisions Other provisions represents the best estimate of a tax provision associated with the share based payment plan of $200,000 (30 June 2024: $200,000). 14 Ai-Media Technologies Limited Notes to the condensed consolidated financial statements 31 December 2024 Note 10. Provisions (continued) Movements in provisions Movements in each class of provision during the current financial half-year, other than employee benefits, are set out below: Annual leave $'000 Long service leave $'000 Lease make good $'000 Carrying amount at the start of the half-year Additional