UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO SECTION 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of January 2020

Commission File Number: 001-38772

 

REEBONZ HOLDING LIMITED

(Exact Name of Registrant as Specified in Its Charter)

 

c/o Reebonz Limited,
5 Tampines North Drive 5
#07-00
Singapore 528548
+65 6499 9469
(Address of principal executive office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F  ☒    Form 40-F  ☐

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

 

 

 

 

 

 

Interim Financial Statements for the Six Months Ended June 30, 2019

 

The interim financial statements of Reebonz Holding Limited for the six months ended June 30, 2019 is filed herewith as Exhibit 99.1. This financial information was initially filed and made publicly available in the Company’s registration statement on Form F-1, filed with the Securities and Exchange Commission on November 4, 2019.

 

Financial Statements and Exhibits.

 

Exhibit No.   Description
     
99.1   Interim financial statements for the six months ended June 30, 2019

  

1

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  REEBONZ HOLDING LIMITED
   
Date: January 3, 2020 By: /s/ Nupur Sadiwala
    Nupur Sadiwala
    Chief Financial Officer

 

 

2

 

 

 

 

 

Exhibit 99.1

 

 

 

 

 

 

 

 

 

 

 

 

 

Reebonz Holding Limited

 

Interim Condensed Consolidated Financial Statements

 

Six months ended 30 June 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

F-1

 

 

Reebonz Holding Limited

 

Index

 

 

   Pages
    
Interim Condensed Consolidated Statements of Profit or Loss for the Six Months Ended 30 June 2018 and 2019  F-3
    
Interim Condensed Consolidated Statements of Comprehensive Income for the Six Months Ended 30 June 2018 and 2019  F-4
    
Interim Condensed Consolidated Statements of Financial Position as of 31 December 2018 and 30 June 2019  F-5 – F-6
    
Interim Condensed Consolidated Statements of Changes in Equity for the Year Ended 31 December 2018 and Six Months Ended 30 June 2019  F-7 – F-8
    
Interim Condensed Consolidated Statements of Cash Flows for the Six Months Ended 30 June 2018 and 2019  F-9 – F-11
    
Notes to the Interim Condensed Consolidated Financial Statements  F-12 – F-30

 

F-2

 

 

Reebonz Holding Limited

 

Interim Condensed Consolidated Statements of Profit or Loss

 

 

      Six months ended 
   Note  30/06/2018   30/06/2019 
      US$’000   US$’000 
            
            
Revenue  3   44,346    31,123 
Cost of revenue      (32,845)   (23,369)
              
Gross profit      11,501    7,754 
              
Fulfillment expenses      (7,666)   (5,303)
Marketing expenses      (2,632)   (1,932)
Technology and content expenses      (1,925)   (1,804)
General and administrative expenses      (4,828)   (6,432)
Government grant      137    93 
Operating loss      (5,413)   (7,624)
              
Other income      223    622 
Other expenses      (328)   (349)
Finance costs      (1,794)   (3,392)
Finance income      4    4 
       (7,308)   (10,739)
Change in fair value of:             
- Convertible preference shares  9   (14,219)   - 
- Settlement of liabilities by shares      -    1,802 
Loss before tax      (21,527)   (8,937)
Tax expense      (65)   30 
Loss for the period      (21,592)   (8,907)
              
Attributable to:             
Owners of the Company      (21,471)   (8,767)
Non–controlling interests      (121)   (140)
Loss for the period      (21,592)   (8,907)
              
Loss per share (US$)             
Basic, loss for the period attributable to ordinary equity holders of the parent  4   (28.48)*   (3.60)
              
Diluted, loss for the period attributable to ordinary equity holders of the parent  4   (3.18)*   (3.46)

 

*Restated. See Note 4

 

The accompanying accounting policies and explanatory notes form an integral part of the interim condensed consolidated financial statements.

 

F-3

 

 

Reebonz Holding Limited

 

Interim Condensed Consolidated Statements of Comprehensive Income

 

 

   Six months ended 
   30/06/2018   30/06/2019 
   US$’000   US$’000 
         
Loss for the period   (21,592)   (8,907)
           
Other comprehensive (loss)/income:          
Items that may be reclassified subsequently to profit and loss:          
Exchange differences on translation of foreign operations   (353)   (159)
Derecognition of warrants   -    1,809 
Exercise of warrants   -    2,729 
Resale of backstop shares   -    1,531 
Change in fair value of settlement of liabilities by shares   -    735 
Other comprehensive (loss)/income for the period, net of tax   (353)   6,645 
Total comprehensive loss for the period   (21,945)   (2,262)
           
Total comprehensive loss attributable to:          
Equity holders of the parent   (21,839)   (2,125)
Non–controlling interests   (106)   (137)
Total comprehensive loss for the period   (21,945)   (2,262)

 

The accompanying accounting policies and explanatory notes form an integral part of the interim condensed consolidated financial statements.

 

F-4

 

 

Reebonz Holding Limited

 

Interim Condensed Consolidated Statements of Financial Position

 

 

     

Year

ended

   Six months ended 
   Note  31/12/2018   30/06/2019 
      US$’000   US$’000 
            
Assets           
Property and equipment  5   26,915    26,958 
Leasehold land  5   4,728    4,638 
Intangible assets      1,061    846 
Goodwill  6   1,542    1,548 
Non–current financial assets      472    425 
Non–current assets      34,718    34,415 
              
Marketable securities held in trust account      15,196    - 
Inventories  7   18,965    13,221 
Trade and other receivables      4,670    2,420 
Prepayments      2,357    1,060 
Other current financial assets      629    564 
Cash and cash equivalents      2,604    2,509 
Current assets      44,421    19,774 
Total assets      79,139    54,189 
              
Equity             
Share capital  8   82,530    92,090 
Warrants      2,502    5,710 
Accumulated losses      (117,644)   (126,411)
Other components of equity      10,853    17,622 
Shareholders’ deficit attributable to owners of the Company      (21,759)   (10,989)
Non–controlling interests      214    77 
Total shareholders’ deficit      (21,545)   (10,912)
              
Liabilities             
              
Convertible preference shares  9   -    - 
Asset reinstatement obligations      167    200 
Deferred tax liabilities      1,418    1,423 
Trade and other payables      377    350 
Interest–bearing loans and borrowings  10   17,216    16,993 
Non-current liabilities      19,178    18,966 

 

The accompanying accounting policies and explanatory notes form an integral part of the interim condensed consolidated financial statements.

 

F-5

 

 

Reebonz Holding Limited

 

Interim Condensed Consolidated Statements of Financial Position (cont’d.)

 

 

     

Year

ended

   Six months ended 
   Note  31/12/2018   30/06/2019 
      US$’000   US$’000 
Liabilities           
Trade and other payables      19,669    11,997 
Contract liabilities      4,297    3,104 
Asset reinstatement obligations      43    8 
Interest–bearing loans and borrowings  10   42,147    30,343 
Loan from shareholders      15,188    532 
Current tax payable      162    151 
              
Current liabilities      81,506    46,135 
              
Total liabilities      100,684    65,101 
              
Total shareholders’ deficit and liabilities      79,139    54,189 

 

The accompanying accounting policies and explanatory notes form an integral part of the interim condensed consolidated financial statements.

 

F-6

 

 

Reebonz Holding Limited

 

Interim Condensed Consolidated Statements of Changes in Equity

 

 

       Attributable to owners of the Company         
   Note  

Issued

capital

   Warrants  

Share-

based payments

  

Other

reserves

  

Foreign currency

translation

reserve

   Revaluation reserve   Other components of equity, total  

Accumulated

losses

   Total  

Non-

controlling

interests

  

Total

share-holders’

deficit

 
       US$’000   US$’000   US$’000   US$’000   US$’000   US$’000   US$’000   US$’000   US$’000   US$’000   US$’000 
                                                 
At 1 January 2018        14,481    2,054    5,248    (635)   (587)   5,565    9,591    (82,405)   (56,279)   (1,441)   (57,720)
Total comprehensive income for the year                                                            
Loss for the year        -    -    -    -    -    -    -    (35,239)   (35,239)   (216)   (35,455)
Other comprehensive income        -    -    -    1,325    1,432    -    2,757    -    2,757    15    2,772 
Total comprehensive income for the year        -    -    -    1,325    1,432    -    2,757    (35,239)   (32,482)   (201)   (32,683)
                                                             
Issuance of shares for business combination        8,765    -    -    -    -    -    -    -    8,765    -    8,765 
Preference shares converted into ordinary shares        57,914    -    -    -    -    -    -    -    57,914    -    57,914 
Conversion of convertible loans into ordinary shares        917    -    -    -    -    -    -    -    917    -    917 
Conversion of promissory note        453    -    -    -    -    -    -    -    453    -    453 
Derecognition of warrants        -    (245)   -    -    -    -    -    -    (245)   -    (245)
Issuance of warrants        -    94    -    -    -    -    -    -    94    -    94 
Recognition of warrants from business combination        -    599    -    -    -    -    -    -    599    -    599 
Acquisition of non-controlling interest of a subsidiary without a change in control   6    -    -    -    (1,925)   -    -    (1,925)   -    (1,925)   1,856    (69)
Share-based payment transactions   12    -    -    430    -    -    -    430    -    430    -    430 
                                                             
At 31 December 2018        82,530    2,502    5,678    (1,235)   845    5,565    10,853    (117,644)   (21,759)   214    (21,545)

 

The accompanying accounting policies and explanatory notes form an integral part of the interim condensed consolidated financial statements.

 

F-7

 

 

Reebonz Holding Limited

 

Interim Condensed Consolidated Statements of Changes in Equity (cont’d)

 

 

      Attributable to owners of the Company         
   Note 

Issued

capital

   Warrants  

Share-

based payments

  

Other

reserves

  

Foreign currency

translation

reserve

   Revaluation reserve   Other components of equity, total  

Accumulated

losses

   Total  

Non-

controlling

interests

  

Total

share-holders’

deficit

 
      US$’000   US$’000   US$’000   US$’000   US$’000   US$’000   US$’000   US$’000   US$’000   US$’000   US$’000 
                                                
At 1 January 2019      82,530    2,502    5,678    (1,235)   845    5,565    10,853    (117,644)   (21,759)   214    (21,545)
Total comprehensive income for the year                                                          
Loss for the year      -    -    -    -    -    -    -    (8,767)   (8,767)   (140)   (8,907)
Other comprehensive income      -    -    -    6,804    (162)   -    6,642    -    6,642    3    6,645 
Total comprehensive income for the year      -    -    -    6,804    (162)   -    6,642    (8,767)   (2,125)   (137)   (2,262)
                                                           
Issuance of shares      5,413    -    -    -    -    -    -    -    5,413    -    5,413 
Derecognition of warrants      -    (1,809)   -    -    -    -    -    -    (1,809)   -    (1,809)
Issuance of warrants      -    7,747    -    -    -    -    -    -    7,747    -    7,747 
Exercise of warrants      4,147    (2,730)   -    -    -    -    -    -    1,417    -    1,417 
Share-based payment transactions  12   -    -    127    -    -    -    127    -    127    -    127 
                                                           
At 30 June 2019      92,090    5,710    5,805    5,569    683    5,565    17,622    (126,411)   (10,989)   77    (10,912)

 

The accompanying accounting policies and explanatory notes form an integral part of the interim condensed consolidated financial statements.

 

F-8

 

 

Reebonz Holding Limited

 

Interim Condensed Consolidated Statements of Cash Flows

 

 

   Six months ended 
   30/06/2018   30/06/2019 
   US$’000   US$’000 
         
Cash flows from operating activities        
Loss before tax   (21,527)   (8,937)
Adjustments for:          
Depreciation of property and equipment   814    893 
Amortization of leasehold land   107    109 
Amortization of intangible assets   297    258 
Amortization of deferred government grants   (47)   (45)
Property and equipment written off   -    54 
Gain on disposal of property and equipment   -    (5)
Share based payment   116    127 
Expected credit loss allowance   -    19 
Inventories written down   455    643 
Change in fair value of convertible preference shares   14,219    - 
Change in fair value of service provider   -    (1,802)
Finance costs   1,794    3,392 
Finance income   (4)   (4)
Foreign exchange gain, net   (65)   (14)
    (3,841)   (5,312)
Changes in:          
-  inventories   (813)   5,179 
-  trade and other receivables   230    3,640 
-  prepayments   (303)   1,259 
-  other current financial assets   596    63 
-  non–current financial assets   7    49 
-  trade and other payables   (1,012)   (2,437)
-  contract liabilities   170    (1,209)
           
Cash (used in)/from operating activities   (4,966)   1,232 
Interest received   4    4 
Interest paid   (1,135)   (2,616)
Tax paid   (59)   18 
           
Net cash used in operating activities   (6,156)   (1,362)

 

The accompanying accounting policies and explanatory notes form an integral part of the interim condensed consolidated financial statements.

 

F-9

 

 

Reebonz Holding Limited

 

Interim Condensed Consolidated Statements of Cash Flows (Cont’d)

 

 

   Six months ended 
   30/06/2018   30/06/2019 
   US$’000   US$’000 
         
Cash flows from investing activities        
Purchase of property and equipment   (367)   (885)
Addition to intangible assets   (142)   (37)
Proceeds from disposal of property and equipment   -    6 
           
Net cash used in investing activities   (509)   (916)
           
Cash flows from financing activities          
Proceeds from interest–bearing loans and borrowings   27,539    2,745 
Repayment of interest–bearing loans and borrowings   (22,984)   (15,121)
Proceeds from issuance of ordinary shares   -    7,747 
Proceeds from issuance of warrants   -    6,841 
           
Net cash from financing activities   4,555    2,212 
           
Net decrease in cash and cash equivalents   (2,110)   (66)
Cash and cash equivalents at 1 January   7,312    2,604 
Effect on translation on cash and cash equivalent   105    (29)
           
Cash and cash equivalents at 30 June   5,307    2,509 
           
Supplemental disclosures:          
Purchase of property and equipment and intangible assets included in trade and other payables and interest-bearing loans and borrowings   -    - 

 

 

The accompanying accounting policies and explanatory notes form an integral part of the interim condensed consolidated financial statements.

 

F-10

 

 

Reebonz Holding Limited

 

Interim Condensed Consolidated Statements of Cash Flows (Cont’d)

 

 

Reconciliation of movements of liabilities to cash flow arising from financing activities:

 

  

Interest bearing loans and

borrowing

  

Interest bearing loans and

borrowing

 
   30/06/2018   30/06/2019 
   US$’000   US$’000 
         
Balance as at 1 January   58,543    59,363 
           
Cash flows          
Proceeds from interest-bearing loans and borrowings   27,539    2,745 
Repayment of interest-bearing loans and borrowings   (22,984)   (15,121)
Interest expense   1,324    2,494 
Amortization of deferred transaction costs   436    264 
Interest paid   (1,135)   (2,616)
Foreign exchange gain   (84)   (20)
Others   18    - 
The effect of changes in foreign exchange rates   567    227 
Balance as at 30 June   64,224    47,336 

 

The accompanying accounting policies and explanatory notes form an integral part of the interim condensed consolidated financial statements.

 

F-11

 

 

Reebonz Holding Limited

 

Notes to Interim Condensed Consolidated Financial Statements

 

 

1.Corporate information

 

The interim condensed consolidated financial statements of Reebonz Holding Limited (the “Company”) and its subsidiaries (collectively, the “Group”) for the six months ended 30 June 2018 and 2019 was authorized for issue in accordance with a resolution of the directors on 18 September 2019.

 

Reebonz Holding Limited (‘the Company’) incorporated and domiciled in Cayman Island. The registered office is located at c/o Dentons, 3rd Floor, One Capital Place, Shedden Road,George Town, Grand Cayman, Cayman Islands. The Company’s principal executive office is located at 5 Tampines North Drive 5, Reebonz Building, Singapore 528548.

 

The principal activities of the Group are mainly as an online retailer of luxury goods and also to provide a marketplace for sellers to sell luxury goods.

 

1.1Business combination

 

On 19 December 2018, the Company changed its name from DOTA Holdings Limited to Reebonz Holding Limited.

 

DOTA Holdings Limited was incorporated on 27 July 2018 by Draper Oakwood Technology Acquisition, Inc., (“DOTA”) for the sole purpose of consummating the business combination described further below. On 4 September 2018, Reebonz Limited (“Reebonz”) entered into a business combination agreement with a special purpose acquisition company, DOTA, a Delaware Corporation, listed on National Association of Securities Dealers Automated Quotations (“NASDAQ”).

 

The Business Combination was accounted for as a reverse acquisition in accordance with the International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). Under this method of accounting, DOTA is treated as the “acquired” company. This determination was primarily based on Reebonz comprising the ongoing operations of the combined company, Reebonz’s senior management comprising the senior management of the combined company, and Reebonz stockholders having a majority of the voting power of the combined company. For accounting purposes, Reebonz is deemed to be the accounting acquirer in the transaction and, consequently, the transaction is treated as a recapitalization of Reebonz. Accordingly, the consolidated assets, liabilities and results of operations of Reebonz are the historical financial statements of the combined company, and DOTA’s assets, liabilities and results of operations are consolidated with Reebonz beginning on the acquisition date.

 

As a result of the above transaction, the Company became the ultimate parent of Reebonz Limited and DOTA on 19 December 2018, being the acquisition date. The Company’s common stock and warrants are traded on the NASDAQ Capital Market under the ticker symbols RBZ and RBZAW, respectively.

 

The comparative financial years included herein are derived from the consolidated financial statements of Reebonz.

 

F-12

 

 

Reebonz Holding Limited

 

Notes to Interim Condensed Consolidated Financial Statements

 

 

2.Significant accounting policies

 

2.1Basis of preparation

 

The interim condensed consolidated financial statements for the six months ended 30 June 2018 and 2019 have been prepared in accordance with IAS 34 Interim Financial Reporting.

 

The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group’s audited consolidated financial statements for the year ended
31 December 2018.

 

Operating results for the six months ended 30 June 2019 are not necessarily indicative of the results that may be expected for the year ending 31 December 2019. Due to the seasonal nature of the demand for luxury products, higher revenues are usually expected during festive periods, especially the December holiday season due to consumers’ increased leisure time and discretionary spending. Consequently, revenues for the fourth quarter tend to be higher than the other quarters.

 

Going concern basis of accounting

 

The interim condensed consolidated financial statements have been prepared on a going concern basis, which assumes that the Group will be able to meet its financial obligation, working capital requirements and capital expenditures as and when they fall due.

 

The Group incurred an operating loss of US$7,624,000 (30/06/2018: US$5,413,000) for the period ended 30 June 2019 and as at that date, the Group recorded a shareholders’ deficit of US$ 10,989,000 (31/12/2018: US$21,759,000). The Group recorded net current liabilities of US$26,361,000 (31/12/2018: US$37,085,000) at 30 June 2019.

 

As at 30 June 2019, the Group has trust receipts financing of US$21,474,000 (31/12/2018 : US$22,965,000) due to financial institutions, repayable from July 2019 to September 2019. A portion of the trust receipts financing, amounting to US$17,770,000 (31/12/2018 : US$18,189,000) is secured by a first legal charge over the Group’s leasehold land and building. The carrying value of the Group’s leasehold land and building amounted to US$29,956,000 as at 31 December 2019 (31/12/2018: US$30,444,000). The Group has other short-term borrowings from third parties, amounting to US$298,000 (31/12/2018 : US$7,297,000) which are repayable in Q3’2019. In addition, the unsecured term loan as at 30 June 2019 of US$7,036,000 (31/12/2018 : US$10,765,000) is repayable in Q3’2019 to Q2’2020. Refer to Note 10 for the terms and conditions of the outstanding interest-bearing loans and borrowings.

 

The interim condensed consolidated financial statements have been prepared on a going concern basis, based on the following:

 

1.Continuation by the Group’s bankers to provide access to the Group to drawdown and roll-forward existing short term financing facilities which will enable the Group to meet its working capital requirements, financial obligation and capital expenditure as and when they fall due.

 

2.The Group is also considering other potential financing options with banks and other third parties to allow the Group to have sufficient funds to meet its working capital requirements, financial obligations and capital expenditure. Failure to do so may prevent the Group’s continuation of it listing status in the Nasdaq stock market.

 

F-13

 

 

Reebonz Holding Limited

 

Notes to Interim Condensed Consolidated Financial Statements

 

 

2.Significant accounting policies (cont’d)

 

Management acknowledges that material uncertainty remains over the Group’s ability to meet its funding requirements and ability to gain continued access to short term financing. However, as described above, management has a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. If for any reason the Group is unable to continue as a going concern, then this could have an impact on the Group’s ability to realize assets at their recognized values, in particular goodwill and other intangible assets, and to extinguish liabilities in the normal course of business at the amounts stated in the consolidated financial statements.

 

2.2Use of judgements and estimates

 

In preparing these interim condensed consolidated financial statements, management has made judgements and estimates that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

 

The significant judgements made by management in applying the Group’s accounting policies and key sources of estimation uncertainty were the same as described in the last annual financial statements, except for new significant judgements and key sources of estimation uncertainty related to the application of IFRS 16, which are described in Note 2.3.

 

2.3Changes in significant accounting policies

 

Except as described below, the accounting policies applied in these interim financial statements are the same as those applied in the Group’s consolidated financial statements as at and for the year ended 31 December 2018.

 

The changes in accounting policies are also expected to be reflected in the Group’s consolidated financial statements as at and for the year ending 31 December 2019.

 

The Group has adopted IFRS 16 Leases from 1 January 2019 using the modified retrospective approach with an adjustment of the balance of retained earnings as of 1 January 2019, with no restatement of comparative information. A number of other new standards are effective from 1 January 2019 but they do not have a material effect on the Group’s financial statements.

 

IFRS 16 introduces a single, on-balance sheet lease accounting model for lessses. A lessee recognises a right-of-use asset (“ROU”) representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments. There are recognition exemption for short-term lease and leases of low-value items. Lessor accounting remains similar to the current standard – i.e. lessors continue to classify leases as finance or operating leases.

 

The Group has applied the following exemptions at the transition date :

 

-Not applying the requirements to recognize an asset for usage rights and a liability for short-term leases of up to one year
-Not applying the requirements to recognize an asset for usage rights and a liability for leases with a low-value underlying asset
-Examining the existence of lease in an arrangement only for new or modified contracts
-Use of a uniform discount rate for lease portfolios that share similar characteristics
-Non-inclusion in the asset of direct cost incurred in a lease on date of initial application date

 

F-14

 

 

Reebonz Holding Limited

 

Notes to Interim Condensed Consolidated Financial Statements

 

 

2.Significant accounting policies (cont’d)

 

2.3Changes in significant accounting policies (cont’d)

 

The Group has performed an assessment of the new standards on its existing lease arrangement as a lessee. The Group expects these operating leases to be recognized as ROU assets with corresponding lease liabilities under the new standard.

 

The operating lease commitments on an undiscounted basis amount to approximately 1.7% of the total assets and approximately 2.0% of the total liabilities. Assuming no additional new operating leases in future years until the effective date, the Group expects the amount of ROU asset and lease liability to be lower due to discounting and as the lease terms run down.

 

As at 1 January 2019, the Group expects an increase in right-of-use assets of US$490,000 and an increase in lease liability of US$490,000. The nature of expenses related to those leases will now change because the Group will recognize a depreciation charge for right-of-use assets and interest expense on lease liabilities. Previously, the Group recognized operating lease expense on a straight-line basis over the term of the lease, and recognized assets and liabilities only to the extent that there was a timing difference between actual lease payments and the expenses recognized. No significant impact is expected for the Group’s finance leases.

 

2.4Standards issued but not yet effective

 

A number of new standards and amendments to standards are effective for annual periods beginning after 1 January 2019 and earlier application is permitted; however, the Group has not early adopted them in preparing these interim condensed consolidated financial statements.

 

2.5Functional and presentation currency

 

These consolidated financial statements are presented in United States dollars (“US$”). All financial information presented in US$ has been rounded to the nearest thousand, unless otherwise stated.

 

On 19 December 2018, the Company assessed its functional currency to be US$. The Company assessed the currency of the Company’s financing and investing activities and determined that US$ more appropriately reflects the current and prospective economic substance of the underlying transactions and circumstances of the Company. The functional currencies in relation to Reebonz and the Company’s foreign operations remain unchanged.

 

F-15

 

 

Reebonz Holding Limited

 

Notes to Interim Condensed Consolidated Financial Statements

 

 

3.Revenue

 

The table below shows the Company’s revenue streams disaggregated by its categories that depict the nature, amount, timing and uncertainty of revenue and cash flows by their economic factors.

 

   Timing of   Six months ended 
  

revenue recognition

  30/06/2018   30/06/2019 
      US$’000   US$’000 
            
Merchandise revenue  Merchandise revenue  recognized at a point in time   41,970    28,227 
Marketplace revenue  Service revenue recognized at a point in time   2,154    2,660 
Rental revenue  Rental revenue recognized over time   222    236 
              
       44,346    31,123 

 

4.Loss per share

 

Basic profit/(loss) per share amounts are calculated by dividing profit/(loss) for the year attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year.

 

Diluted profit/(loss) per share amounts are calculated by dividing the profit/(loss) attributable to ordinary equity holders of the parent (after adjusting for change in fair value of the convertible preference shares and warrants) by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares. The dilutive effect of outstanding share options is reflected as additional share dilution.

 

F-16

 

 

Reebonz Holding Limited

 

Notes to Interim Condensed Consolidated Financial Statements

 

 

4.Loss per share (cont’d)

 

The following reflects the income and share data used in the basic and diluted earnings per share computations:

 

Basic earnings per share

 

The calculation of basic earnings per share has been based on the following profit/(loss) attributable to ordinary equity holders of the parent and weighted-average number of ordinary shares outstanding.

 

      Six months ended
      30/06/2018   30/06/2019
      US$’000   US$’000
I. Loss attributable to ordinary equity holders of the parent (basic):     
  Loss for the year, attributable to ordinary equity holders of the parent   (21,471)  (8,767)
           
      No. of shares   No. of  shares
II.

Weighted-average number of ordinary shares in thousands (basic):

     
  Issued ordinary shares at 1 January   6,029   8,644
  Effect of shares issued in January 2019   -   88
  Effect of reverse split at ratio 8:1 in March 2019   (5,275)  (7,641)
  Effect of shares issued in April 2019   -   1,021
  Effect of exercise of warrants   -   290
  Effect of shares issued in May 2019   -   32
 

Weighted-average number of ordinary shares at 30 June, as adjusted for subsequent reverse split

   754   2,434
        
  Basic loss per share (US$ per share)   (28.48)  (3.60)

 

F-17

 

 

Reebonz Holding Limited

 

Notes to Interim Condensed Consolidated Financial Statements

 

 

4.Loss per share (cont’d)

 

Diluted earnings per share

 

The calculation of diluted earnings per share has been based on the following (loss)/profit attributable to ordinary equity holders of the parent and weighted-average number of ordinary shares outstanding after adjustment for the effects of all dilutive potential ordinary shares.

 

     Six months ended 
     30/06/2018   30/06/2019 
     US$’000   US$’000 
I. Loss attributable to ordinary equity holders of the parent (diluted):        
  Loss attributable to ordinary equity holders of the parent   (21,471)   (8,767)
  Change in fair value of convertible preference shares:          
  Series A   3,219    - 
  Series B   4,150    - 
  Series C   6,994    - 
  Series D   (144)   - 
  Unwinding of discount on contingent settlement provision   5    - 
  Loss attributable to ordinary equity holders of the parent (diluted)   (7,247)   (8,767)
             
II. Weighted-average number of ordinary shares in thousands (diluted)          
  Weighted-average number of ordinary shares (basic)   754    2,434 
  Effect of conversion of preference shares   1,411    - 
  Effect of share options on issue   117    100 
      2,282    2,534 
             
  Diluted loss per share (US$ per share)   (3.18)   (3.46)

 

5.Property and equipment

 

Leasehold land

 

Acquisitions

 

During the six months ended 30 June 2019, the Group acquired property and equipment of US$885,000 (30 June 2018 : US$367,000).

 

The company’s leasehold land which was acquired from an affiliate of the Singapore Government, is pledged to secure the company’s term loan and trust receipts facilities (note 10).

 

The carrying value of the building as at 30 June 2019 was US$25,318,000 (31/12/2018: US$25,716,000). The building is valued every 3 years on 31 December by an independent professional valuer. The most recent valuation of the building was performed as at 31 December 2017. Valuations are made on the basis of open market value. It is the intention of the management to hold the building for long term. The building is pledged to secure the company’s term loan and some of the trust receipts (note 10).

 

See Note 13 for capital commitments.

 

F-18

 

 

Reebonz Holding Limited

 

Notes to Interim Condensed Consolidated Financial Statements

 

 

6.Goodwill

 

The carrying amount of goodwill allocated to each of the CGU is as follows:

 

  

Year

ended

   Six months ended 
   31/12/2018   30/06/2019 
   US$’000   US$’000 
         
Reebonz Korea   834    834 
Invitree   670    670 
Translation difference   38    44 
           
Total   1,542    1,548 

 

Impairment

 

Goodwill is tested for impairment annually (as at 31 December) and when circumstances indicate the carrying value may be impaired. The Group’s impairment test for goodwill is based on value-in-use calculations. The key assumptions used to determine the recoverable amount for the different cash generating units were disclosed in the annual consolidated financial statements for the year ended 31 December 2018.

 

As at 30 June 2019 (30 June 2018), there were no circumstances that indicated that the carrying value of goodwill may be impaired.

 

Information about subsidiaries

 

The consolidated financial statements of the Group include:

 

Name of significant subsidiaries  Principal activity  Country of business/ incorporation 

 

Percentage of
ownership interest

 
        

Year

ended

   Six months ended 
         31/12/2018   30/06/2019 
         %   % 
Held by the Company              
                 
Reebonz Pty. Ltd.
(“Reebonz Australia”)
  Provide marketing support and sale of luxury products  Australia   100    100 
                 
Reebonz Korea Co., Ltd. (“Reebonz Korea”)*  Import, export, wholesale, retail and rental of luxury products  Korea   58.4    58.4 
                 
Held by Reebonz Korea                
                 
Invitree Co., Ltd. (“Invitree”)  Sale of luxury products  Korea   90    90 

 

F-19

 

 

Reebonz Holding Limited

 

Notes to Interim Condensed Consolidated Financial Statements

 

 

6.Goodwill (cont’d)

 

Material partly-owned subsidiaries

 

The Group has the following subsidiaries that has NCI that is material to the Group.

 

Name of Subsidiaries  Principal place of business 

Proportion

of ownership interest

held by NCI

  

Profit/(Loss) allocated

to NCI

during the reporting period

  

Accumulated NCI at the

end of reporting period

 
      %   US$’000   US$’000 
Held by Reebonz Holding Limited               
                
31 December 2018               
Reebonz Korea  Korea   41.6    63    2,323 
                   
30 June 2019                  
Reebonz Korea  Korea   41.6    (49)   2,183 
                   
Held by Reebonz Korea                  
                   
31 December 2018                  
Invitree Co., Ltd  Korea   47.4    (277)   (2,081)
                   
30 June 2019                  
Invitree Co., Ltd  Korea   47.4    (90)   (2,076)

 

F-20

 

 

Reebonz Holding Limited

 

Notes to Interim Condensed Consolidated Financial Statements

 

 

6.Goodwill (cont’d)

 

Summarized financial information about subsidiaries with material NCI

 

Summarized financial information including goodwill on acquisition and consolidation adjustments but before intercompany eliminations of subsidiaries with material NCIs are as follows:

 

  

Year

ended

   Six months ended 
Reebonz Korea sub-group  31/12/2018   30/06/2019 
   US$’000   US$’000 
Summarized statement of financial position        
Current assets   3,728    2,625 
Non-current assets   155    481 
Goodwill   1,542    1,548 
Current liabilities   (3,020)   (2,420)
Non-current liabilities   (297)   (458)
Total surplus   2,108    1,776 
           
Attributable to NCI, allocated according to changes in equity interest during the year   242    107 

 

  

Year

ended

   Six months ended 
Reebonz Korea sub-group  31/12/2018   30/06/2019 
   US$’000   US$’000 
Summarized statement of comprehensive income        
Revenue   21,841    12,485 
Loss for the year   (416)   (309)
Other comprehensive income   9    2 
Total comprehensive loss   (407)   (307)
           
Attributable to NCI, allocated according to changes in equity interest during the year   (214)   (139)
           
Summarized cash flow information          
Operating   (3,543)   (161)
Investing   (7)   (359)
Financing   3,597    365 
Net increase in cash and cash equivalents   47    (155)

 

7.Inventories

 

During the six months ended 30 June 2018 and 2019, US$455,000 and US$642,000 respectively were recognized as an expense for inventories carried at net realizable values, in cost of revenue.

 

F-21

 

 

Reebonz Holding Limited

 

Notes to Interim Condensed Consolidated Financial Statements

 

 

8.Share capital

 

      

Year

ended

   Six months ended 
       31/12/2018   30/06/2019 
Authorized               
Ordinary shares        200,000,000    25,000,000 
                
    Note    No. of shares    US$’000 
At Reebonz Holding Limited:               
At inception        1    n.m.* 
Conversion of 10,766,609 Reebonz Limited ordinary shares at ratio 0.56 to the legal acquirer, Reebonz Holding Limited        6,029,033    14,481 
Changes in equity due to business combination               
Convertible preference shares   i)    11,289,261    57,914 
a) Convertible loan   ii)    178,726    917 
b) Ordinary shares issued on recapitalization with DOTA   iii)    1,796,959    9,218 
c) Backstop shares   iii)    1,847,780     
At 31 December 2018        21,141,760    82,530 

 

*not meaningful

 

   No. of
shares
   US$’000 
         
At 1 January 2019   21,141,760    82,530 
Issuance of new ordinary shares   351,997    493 
    21,493,757    83,023 
Effect of reverse split at ratio 8:1 in March 2019   2,686,720     
Rounding shares due to reverse split   566     
Issuance of new ordinary shares   2,599,971    4,920 
Exercise of warrants   934,707    4,147 
At 30 June 2019   6,221,964    92,090 

 

The movement in share capital of Reebonz Holding Limited during the year 2018 is as follows:

 

i)On 19 December 2018, Reebonz Limited’s Series A, B, C and D Preference Shareholders swapped their Series A, B, C and D Preference Shares into Preference Shares of the Company on a 1:1 basis which in turn, immediately converted into ordinary shares of the Company at an agreed conversion rate of 0.56 ordinary shares for every Preference Share held.

 

ii)On 19 December 2018, Reebonz Limited’s Convertible Loan was swapped into a Convertible Loan with the Company which in turn, was immediately converted into 178,726 ordinary shares of the Company at an issue price of US$10.27. The holder of the Convertible Loan also received 74,469 bonus Warrants (See Note 15 (c)(iv)) of the Company.

 

iii)As part of the business combination with DOTA on 19 December 2018;

 

a)Holders of DOTA Class F Shares cancelled 718,750 Class F Shares of DOTA, which represented 50% of Class F Shares issued. The remaining un-cancelled F Common stockholders swapped their common stocks into ordinary shares of the Company at an agreed basis of 1:1.

 

F-22

 

 

Reebonz Holding Limited

 

Notes to Interim Condensed Consolidated Financial Statements

 

 

b)Out of 6,137,500 DOTA Class A shares, 1,476,436 were purchased by two investors (the “Backstop Investors”) who entered into separate backstop agreements (the “Backstop Agreements”) on 13 December 2018 and 14 December 2018 with DOTA and Reebonz Limited. Pursuant to the Backstop Agreements, the investors acquired a total of 1,476,436 Class A Shares of DOTA (i.e. “Backstop Shares”) for US$15 million. Refer to Note 38. Via approval of the Board of Directors, the Backstop Investors also received an additional 371,344 ordinary shares and 74,469 warrants of Reebonz Holding Limited.

 

c)4,273,564 shares of DOTA’s Class A shares were redeemed at an issue price of US$10.29 per share, for a total redemption amount of U$43,962,000. The remaining 387,500 Class A shares were swapped into ordinary shares of the Company at an agreed basis of 1:1.

 

d)DOTA’s 602,250 unit purchase options rights were exchanged for 602,250 ordinary shares of the Company.

 

e)DOTA’s promissory note was swapped and immediately converted into 88,459 ordinary shares of Reebonz Holding Limited.

 

f)On 30 January 2019, 351,997 ordinary shares were issued at US$1.40 per share

 

g)On 15 March 2019, the Company effected a 1-for-8 reverse stock split of its ordinary shares.

 

h)On 17 April 2019, 2,472,500 ordinary shares and warrants were issued at US$5 per share upon the completion of the public offering

 

i)On 17 May 2019, 127,471 ordinary shares were issued at US$5.91

 

j)The detail of exercise warrants are as follows:

 

Warrants
At inception
  No. of warrants 
Issuance of new warrants   2,472,500 
Exercise of warrants   (934,707)
Outstanding as of 30 June 2019   1,537,793 

 

The holders of ordinary shares are entitled to receive dividends as and when declared by the Company. All ordinary shares carry one vote per share without restriction. The ordinary shares have no par value.

 

F-23

 

 

Reebonz Holding Limited

 

Notes to Interim Condensed Consolidated Financial Statements

 

 

9.Convertible preference shares

 

Reconciliation of fair value measurement of Series C and Series D Preference Shares:

 

   Series A Preference Shares   Series B Preference Shares   Series C Preference Shares   Series D Preference Shares   Total 
   US$’000   US$’000   US$’000   US$’000   US$’000 
                     
At 1 January 2018   7,113    9,173    15,608    24,960    56,854 
Change in fair value of convertible preference shares   3,219    4,150    6,994    (144)   14,219 
Translation Difference   39    51    87    246    423 
                          
At 30 June 2018   10,371    13,374    22,689    25,062    71,496 
                          
At 1 January 2018   7,113    9,173    15,608    24,960    56,854 
Change in fair value of convertible preference shares   1,659    2,140    3,574    (5,305)   2,068 
Preference shares converted into ordinary shares on 19 December 2018   (8,618)   (11,113)   (18,842)   (19,341)   (57,914)
Translation Difference   (154)   (200)   (340)   (314)   (1,008)
At 31 December 2018                    

 

10.Interest-bearing loans and borrowings

 

  

Year

ended

   Six months ended 
   31/12/2018   30/06/2019 
   US$’000   US$’000 
Current        
Secured term loan   979    987 
Unsecured term loan   10,765    7,036 
Trust receipts   22,965    21,474 
Loans from external party   59    - 
Promissory note   29    29 
Obligation under  finance lease   53    519 
Other borrowings   7,297    298 
    42,147    30,343 
Non-current          
Secured term loan   17,212    16,783 
Obligation under finance lease   4    210 
    17,216    16,993 
           
    59,363    47,336 

 

The contractual and effective interest rate on the short-term borrowings at reporting dates ranges from 3.44% to 4.50% (2018: 2.71% to 4.12%) per annum.

 

F-24

 

 

Reebonz Holding Limited

 

Notes to Interim Condensed Consolidated Financial Statements

 

 

11.Related party transactions

 

The following transactions took place between the Group and related parties at terms agreed between the parties during the relevant financial period:

 

(a)Sales and purchase of goods and services

 

   Six months ended 
   30/06/2018   30/06/2019 
   US$’000   US$’000 
         
Maintenance income   (5)   - 
Rental Income   (9)   (6)

 

Terms and conditions of transactions with related parties

 

There have been no guarantees provided or received for any related party receivables or payables. For the periods ended 30 June 2018 and 2019, the Group has not recorded any expected credit loss allowances relating to amounts owed by related parties. This assessment is undertaken each financial period through examining the financial position of the related party and the market in which the related party operates.

 

(b)Key management personnel compensation is as follows

 

Key management personnel of the Group are those persons having the authority and responsibility for planning, directing and controlling the activities of the Group. The Chief Executive Officer, Chief Brand Officer, Chief Financial Officer, Chief Operating Officer, Chief Revenue Officer, Chief Technology Officer, Chief People Officer and Regional General Manager are considered key management personnel of the Group. Compensation payable to key management personnel comprise :

 

   Six months ended 
   30/06/2018   30/06/2019 
   US$’000   US$’000 
         
Salaries, bonus and allowances   308    473 
Employer's contribution to CPF   23    28 
Employee share option expense   147    96 

 

The amounts disclosed in the table are the amounts recognized as an expense during the period related to key management personnel.

 

12.Share-based payments

 

The expenses recognized for employee services received during the periods are shown in the following table:

 

  

Year

ended

   Six months ended 
   30/6/2018   30/06/2019 
   US$’000   US$’000 
           
Expenses arising from employee share option scheme   116    127 

 

F-25

 

 

Reebonz Holding Limited

 

Notes to Interim Condensed Consolidated Financial Statements

 

 

12.Share-based payments (cont’d)

 

On 23 February 2018, the Company granted 424,000 share options, at an exercise price of $2.50 each, to employee under the 2010 Employee Share Option Scheme (the “ESOS”). No stock options were granted in the six months ended 30 June 2019.

 

The fair value of services received in return for share options granted is measured by reference to the fair value of share options granted. The estimate of the fair values of the share options granted are measured based on the Black Scholes model, taking into account the terms and conditions upon which the options were granted. The Company determined the fair values of the share options granted with the assistance of an external appraiser.

 

The following table lists the inputs to the model used for the options granted during the periods ended 30 June 2018 and 2019 respectively:

 

    30/06/2018    30/06/2019 
           
Expected volatility (%)   44.5 to 49.1    N/A 
Risk-free interest rate (%)   1.91 to 2.19    N/A 
Expected life of share options (years)   3.25 to 6.25    N/A 
Share price $   2.39    N/A 

 

The Company estimates expected volatility at the grant dates based on historical volatilities of comparable companies for periods in correspondence to the expected life of share options. Risk–free interest rates are based on zero coupon Singapore risk-free rate for the terms consistent with the expected life of the award at the time of grant. The Company has no historical exercise patterns of employee share options as reference. Expected life is based on management’s estimation, which the Company believes are representative of future behavior.

 

The weighted average fair value of options granted during the period ended 30 June 2019 was N/A (30/06/2018: 0.98).

 

13.Capital commitments

 

Capital expenditures contracted for at the reporting dates but not recognized in the financial statements are as follows:

 

   30/06/2018   30/06/2019 
   US$’000   US$’000 
         
Office building   444    - 
Property and equipment   309    304 

 

14.Segment information

 

For management purposes, the Group has only one operating and reportable segment.

 

Revenue from external customers for the various types of products the Company sells to are not disclosed as the information is not available and the determination is not practicable.

 

F-26

 

 

Reebonz Holding Limited

 

Notes to Interim Condensed Consolidated Financial Statements

 

 

14.Segment information (cont’d)

 

Geographical information (cont’d)

 

   Southeast Asia   North Asia             
   Singapore   Malaysia   Indonesia   The rest of Southeast Asia   Sub-total  

South

Korea

  

Hong

Kong

   China  

The rest of North

Asia

   Sub-total   Australia   Others   Total 
   US$’000   US$’000   US$’000   US$’000   US$’000   US$’000   US$’000   US$’000   US$’000   US$’000   US$’000   US$’000   US$’000 
For the six months ending 30 June 2018                                                    
Revenue from external customers*   9,430    2,282    2,266    637    14,615    10,227    3,008    6,774    2,469    22,478    3,762    3,491    44,346 
                                                                  
As at 31 December 2018                                                                 
Non–current assets                                                                 
Property and equipment   26,793    72    7    2    26,874    12    3    1    9    25    12    4    26,915 
Leasehold land   4,728    -    -    -    4,728    -    -    -    -    -    -    -    4,728 
Intangible assets   1,061    -    -    -    1,061    -    -    -    -    -    -    -    1,061 
Goodwill   -    -    -    -    -    1,542    -    -    -    1,542    -    -    1,542 

 

*The geographical information above is derived based on the registered billing address of the customers.

 

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Reebonz Holding Limited

 

Notes to Interim Condensed Consolidated Financial Statements

 

 

14.Segment information (cont’d)

 

Geographical information (cont’d)

 

   Southeast Asia   North Asia             
   Singapore   Malaysia   Indonesia   The rest of Southeast Asia   Sub-total  

South

Korea

  

Hong

Kong

   China  

The rest of North

Asia

   Sub-total   Australia   Others   Total 
   US$’000   US$’000   US$’000   US$’000   US$’000   US$’000   US$’000   US$’000   US$’000   US$’000   US$’000   US$’000   US$’000 
For the six months ending 30 June 2019                                                    
Revenue from external customers*   6,820    1,162    1,139    397    9,518    12,485    1,938    2,311    1,747    18,481    1,234    1,890    31,123 
                                                                  
As at 30 June 2019                                                                 
Non–current assets                                                                 
Property and equipment   26,247    5    5    1    26,258    349    2    1    17    369    329    2    26,958 
Leasehold land   4,638    -    -    -    4,638    -    -    -    -    -    -    -    4,638 
Intangible assets   843    -    3    -    846    -    -    -    -    -    -    -    846 
Goodwill   -    -    -    -    -    1,548    -    -    -    1,548    -    -    1,548 

 

*The geographical information above is derived based on the registered billing address of the customers.

 

F-28

 

 

Reebonz Holding Limited

 

Notes to Interim Condensed Consolidated Financial Statements

 

 

15.Financial instruments

 

Set out below is an overview of financial instruments, held by the Group as at 31 December 2018 and 30 June 2019:

 

   Amortized costs   Financial liabilities at fair value through profit or loss   Other
financial liabilities at amortized cost
   Total 
   US$’000   US$’000   US$’000   US$’000 
31 December 2018                

Financial assets

                
Current                
Marketable securities held in trust account   15,196            15,196 
Trade and other receivables   4,670            4,670 
Other current financial assets   629            629 
Cash and cash equivalents   2,604            2,604 
    23,099            23,099 
Non-current                    
Non-current financial assets   472            472 
Total financial assets   23,571            23,571 
                     
Financial liabilities                    
Current                    
Trade and other payables, excluding deferred government grants           19,579    19,579 
Loan from shareholders           15,188    15,188 
Interest-bearing loans and borrowings           42,147    42,147 
            76,914    76,914 
Non-current                    
Interest-bearing loans and borrowings           17,216    17,216 
Trade and other payables, excluding deferred government grants           282    282 
Total financial liabilities           94,412    94,412 

 

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Reebonz Holding Limited

 

Notes to Interim Condensed Consolidated Financial Statements

 

 

15.Financial instruments (cont’d)

 

Set out below is an overview of financial instruments, held by the Group as at 31 December 2018 and 30 June 2019:

 

   Amortized costs   Financial liabilities at fair value through profit or loss   Other
financial liabilities at amortized cost
   Total 
   US$’000   US$’000   US$’000   US$’000 
30 June 2019                

Financial assets

                
Current                
Trade and other receivables   2,420            2,420 
Other current financial assets   564            564 
Cash and cash equivalents   2,509            2,509 
    5,493            5,493 
Non-current                    
Non-current financial assets   425            425 
Total financial assets   5,918            5,918 
                     
Financial liabilities                    
Current                    
Trade and other payables, excluding deferred government grants           11,932    11,932 
Loan from shareholders           532    532 
Interest-bearing loans and borrowings           30,343    30,343 
            42,807    42,807 
Non-current                    
Interest-bearing loans and borrowings           16,993    16,993 
Trade and other payables, excluding deferred government grants           275    275 
Total financial liabilities           60,075    60,075 

 

The Group with the assistance of an external appraiser, measures financial instruments such as convertible preference shares and warrants at fair value at each reporting date. The following table shows the information about fair value measurements using significant unobservable inputs (Level 2).

 

Fair value measurement hierarchy for liabilities as at 31 December 2018 and 30 June 2019:

 

Level 2  Date of valuation  $’000
       
Unsecured term loans  31 December 2018  10,765
       
Unsecured term loans  30 June 2019  7,036

 

The fair value of the unsecured term loan approximates its carrying amount due to its maturity of less than one year.

 

16.Seasonality

 

Reebonz’s revenue is subject to fluctuations reflecting a traditional retail seasonality pattern as a result of changes in the timing of local holidays, timing of company promotions and end-off-season sales events that are done on a as need basis, that drive customer demand.

 

17.Events occurring after the reporting period

 

On 4 September 2019, the Company entered into a Senior Convertible Note of US$3,750,000 with certain parties.

 

 

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