QuickFee Limited (QFE) Earnings Call Transcript & Summary

Okay. Let's try that again. We should be echo free and microphone working. Just -- Jennifer, are we okay? Yes. Thank you. I'll commence from the top for those that missed the introduction. Very briefly, we've got Bruce Coombes here, our Executive Director and Managing Director of Australia, in Sydney; Michael McConnell, Executive Director, who joins us from the U.S.; Simon Yeandle, also in Sydney, our CFO and Company Secretary, joins us in person; of course, Jennifer Warawa over in Dallas. Thanks, Jennifer, for joining us, our North American President. And also on the line is Andrew Leigh from William Buck. I just want to acknowledge the work that William Buck do for QuickFee. Andrew is here to answer any questions in relation to the annual report. Okay. Let's -- in terms of the quorum before we move in, the notices of meeting have been properly dispatched, and a quorum of members is present. So I call the meeting officially to order. In terms of the agenda, firstly, I'll provide some brief comments about the 2024 financial year before handing over to Jennifer, who will provide a presentation on the 2024 financial year, which talks through the business in much more detail. We'll then move into the third part of the meeting, which will be the formal business. Today, there'll be 8 resolutions to be considered by shareholders, and they're set out in the notice of meeting. An opportunity will be given to all shareholders to ask questions about or make comments on the items on the agenda for today's meeting. The Board recommends that shareholders vote in favor of all resolutions other than resolution 1 on the adoption of the rem report for which the Board abstains from providing a recommendation in the interest of good governance. So on behalf of the Board, I'm pleased to welcome you today as the Chair of QuickFee. I extend a warm welcome to all shareholders who have taken the time to join us online and in person and, of course, to my fellow directors. I also welcome all members of our dedicated management team from both Australia and the U.S. It's my pleasure to present the financial results for the year ended 30 June 2024, in which we delivered a strong revenue growth on a stable cost base with improved profitability and a strengthened balance sheet. Total revenue was up 37% on prior corresponding period to AUD 20.3 million. That's revenue from -- revenue from core Finance product was up 53% on prior corresponding period to AUD 11.9 million. And our loan book grew by 28% to AUD 55 million as of June 30. Our operating expense line decreased by 1% to AUD 15.8 million, and our net loss after tax improved substantially to $4.7 million, up from a net loss of $8.1 million in FY '23. Importantly, the business recorded its first positive EBITDA result for -- in Q4 FY '24. These strong results reflect both increased total transaction volumes across all products and improved revenue yields. We continue to benefit from a higher interest rate environment and strong demand for our solutions, which help our clients protect and preserve their cash. We certainly have a low credit risk business model. And in FY '23, we continue to have minimal bad debts across the business. So in FY '24, we completed a series of important operational milestones, which underpin future revenue growth and the scalability of our model. We continue to sign up new firms. We refined our sales strategy to drive growth in our core high-margin QuickFee Finance product. We finalized some new strategic partnerships and saw growing transaction volumes through QuickFee Connect. Our U.S. leadership team was further strengthened throughout FY '24 with the addition of Dave Moore as our Chief Technology Officer to drive product innovation and efficiency in our development function. We continue to build a highly scalable technology platform, which easily integrates with a broad range of strategic partners and leading practice management systems. Our development operations teams transitioned QuickFee's ACH processing to a direct-to-bank model, delivering more control over our core processes, reduced ACH processing costs and provide full ACH processing redundancy. We continue to strengthen our balance sheet through a finalization of a $10 million facility to support the growth of our Australian legal disbursements funding business and the successful completion of a well-supported $4.4 million capital raise to fund further loan book growth, reflecting the strong endorsement of the significant growth opportunity ahead for QuickFee. We entered FY '25 with increased lending capacity for expansion in both the U.S. and Australia, and I'm pleased to report that our Q1 results were strong with revenue up 33% on PCP, driven by strong growth in our core Finance product in both Australia and the U.S. In early FY '25, we launched a new QuickFee Connect integration with Thomson Reuters Practice CS, and we are focused on new firm acquisition and implementing initiatives to drive strong Connect adoption. The Board is certainly confident we are on the right track in building the foundations for transformational growth. With a high performance -- high-performing and experienced management team in place, we remain optimistic about the potential for transformational growth in the U.S. over the years ahead. The market opportunity in the U.S. remains significant, and QuickFee is well positioned to take advantage of the industry tailwinds driving increased adoption of e-invoicing. Our earnings guidance remains unchanged with expected FY '25 EBITDA in the range of $1.5 million to $2.5 million with a stronger second half. I'd like to thank our funding partners for their continued support, together with our new and existing retail and institutional shareholders. I'd also like to thank the entire QuickFee team, both across Australia and in the U.S., for their ongoing commitment, dedication and hard work. We continue to have extremely positive momentum across all metrics in the business, and we're focused on the delivery of a profitable FY '25 and continued growth in shareholder value. I'll now hand over to Jennifer, who will deliver a more detailed presentation of the year just passed and a business update. Jennifer, over to you.

Thank you, Dale. Good morning and good afternoon, everyone. We're pleased to present management's update for our Annual General Meeting. Record Finance and PayNow volumes in both the U.S. and Australia drove revenue growth of 37% to $20.3 million for FY '24. FY '23 was AUD 14.8 million with interest revenue up 53% to $11.2 million from $7.3 million in FY '23, and revenue from PayNow and other fees was up 21% to $9.1 million from $7.5 million in FY '23. QuickFee's lending activities are funded by 88% borrowings and 12% of our own funds. A combination of growth in the loan books and the higher interest rate environment in both Australia and the U.S. resulted in interest expense increasing to $4.7 million in FY '24 from $2.6 million in FY '23. Our borrowing costs are linked to bank borrowing rates in both countries. Two factors ultimately drive this cost going forward, the loan book growth and, thus, level of funds drawn and interest rates. Remaining cost of sales increased to $3 million from $2.8 million in FY '23. This line item is made up of variable processing costs for U.S. ACH and Australian credit card payments and credit and loan approval expenses. The modest increase of $0.2 million in cost of sales reflects lower ACH processing costs from the move to our direct-to-bank processing model, where now all ACH PayNow transactions are processed in-house through 2 separate banks, which delivers more internal control over core processes and full ACH processing redundancy as well as removing a lot of third-party processing costs. Operating expenses declined by $0.2 million in FY '24. We've continued to manage costs carefully without impacting the growth potential of our products and are running a stable cost base of $15.8 million, down $0.2 million on FY '23. The reduction in OpEx was primarily driven by reducing general and admin costs as we trim nonessential costs from the business and redeploy our dollars into revenue-generating activities whenever possible. Bad debts remained at their very low levels at just 0.14% of lending. This remains a key highlight of our B2B-only business model and underpins the credit quality of our firms. And our EBITDA loss after interest costs halved, improving $3.3 million to $3.2 million. And NPAT improved $3.4 million to negative $4.7 million. Importantly, EBITDA for H2 was close to breakeven at negative $0.5 million, up from negative $2.8 million in FY '23. And our permanent headcount reduced by 1. At 30th of June 2024, we had 46 staff in total, 28 in the U.S. and 16 in Australia as well as 2 nonexecutive directors. In the U.S., we delivered strong revenue growth with U.S. revenue up 29%, driven by 54% growth in the U.S. Finance revenue to AUD 4 million and 22% growth in PayNow revenue up to AUD 7.2 million. Our gross margin was impacted by higher interest rate expense due to rate rises and higher borrowings to fund loan book growth. However, gross profit was up 21%. The U.S. realized improved EBITDA now positive at $0.2 million. And finally, new customer acquisition saw strong growth in the number of active firms, which was up 5% to 794; and the active customer numbers, which was up 12% to 357,000. Australia had a very strong FY '24 with revenue up 49% on FY '23. We saw record lending volumes and also yields from both the fee funding and legal disbursements funding products. For a mature market, this is a fantastic result and a testament to all the hard work the team has put in over the last year. The disbursement funding product delivers higher revenue per dollar originated than the traditional fee funding product as the interest compounds, and this has contributed to increased revenue yields as the disbursement funding book grows. The book now comprises approximately 1/3 of the Australian loan book as of the 30th of June 2024. In December 2023, QuickFee finalized the agreement with Wingate Corporate Investments for a AUD 10 million funding facility to support this growth. The Australian buy now, pay later product, Q Pay Plan, which provides finance to the homeowner services market and includes the Jim's Group franchise agreement, had strong growth with FY '24 TTV up 100% to AUD 3.4 million on PCP versus FY '23 that was at AUD 1.7 million. This product is making small but growing positive contributions to revenue and EBITDA. With operating expenses down 6% as nonessential costs were removed from the Australian business, the Australian region delivered EBITDA of $2.4 million, up $2.2 million on FY '23. As we look ahead to the remainder of FY '25, we'll continue to have a focus on sustained profitability supported by acceleration of TTV and revenue from QuickFee Finance and QuickFee Connect as well as very careful management of our cost base. Our Connect integrations will continue to drive increasing demand and opportunity, allowing us to win more new customers and drive PayNow and Pay Over Time transaction volume as well as revenue through our new subscription model. In addition, we're in advanced discussions with various potential lenders to secure financing to replace the Northleaf facility in full prior to the 31st of March 2025. And we'll update the market in due course with any further developments on this. Most importantly, we expect FY '25 EBITDA in the range of AUD 1.5 million to AUD 2.5 million weighted to the second half. Our outlook for FY '25 is positive, and it's strongly supported by our momentum. I have no doubt that we're in the right place at the right time and that we're well positioned to take advantage of the market opportunity while delivering unparalleled solutions to our accounting market segment. Our top-tier management team are leading their areas of the business with owner mentality, high accountability and a sharp focus on outcomes, the same outcomes that you as an investor are seeking. We have a proven track record of delivering strong year-over-year revenue growth. Just one of our verticals, accounting, has a serviceable addressable market of $84 billion in the U.S. alone. The market opportunity is tremendous. Given we have just 14% of our existing firm's revenue flowing through QuickFee, we have the opportunity to 8x our transaction volume without even getting one new customer. Our proposition is different. The combination of our unique Finance product, Connect's ability to modernize the firm's existing tech stack and our unique pricing sets us apart from anyone else in the market. Finally, we have a customer base of over 1,250 professional service firms that continues to grow. We're extremely appreciative for your time today and hope you can feel the energy around the results, our strategy, our momentum and our plans to execute. It's an incredibly exciting time to be at QuickFee, and I believe that our best days lie ahead. I will now hand it back over to the meeting Chair, Dale Smorgon.

Thank you, Jennifer. Appreciate that great update, and well done to you and the team for everything that you're putting into the business. We're certainly making some great ground. We'd now like to move to the meeting formalities. So the notice of meeting has been circulated to all shareholders, and I'd like to take the notice of meeting as having been read. All shareholders have had an opportunity to submit voting instructions via proxy. And before each resolution is put to a vote, we will display the proxy voting instructions on the screen for your information. The proxy instruction forms received are held by the Company Secretary and are available for inspection. Voting on each resolution at today's meeting will be conducted via poll immediately prior to the conclusion of the meeting. For those who are physically in attendance at the meeting, you'll be able to submit a voting card, which will be collected by a representative from the company. Shareholders who are viewing the meeting via webcast will not be able to vote in real time. There will be an opportunity for shareholders or the representatives who are physically present today to ask questions or make comments in relation to the resolutions. If you wish to do so, I ask you identify yourself by name and whether you're a shareholder, proxyholder or corporate representative and how many shares you either own or represent. Shareholders who are not in attendance have had an opportunity to submit questions to the company ahead of the meeting. No questions have been received. I present for discussion the annual report of the company comprising the financial statements and directors' report, the independent auditor's report of the company for the financial year ended 30 June 2024. The company's annual report was released to the market on 27 August 2024 and is available on the company's website. There is no requirement for a resolution that the annual report be adopted. However, at this point, I invite any questions that shareholders may have in relation to the annual report for the directors or for Andrew Leigh, the company's auditor for William Buck, in relation to the annual report. Members may ask questions of the auditor in relation to the conduct of the audit or the auditor's report itself. There are no questions in relation to the annual report. So let's move to resolution 1, the adoption of the remuneration report. The first item of business relates to the adoption of the rem report for the year ended 30 June 2024 and is set out on Pages 19 to 34 of the 2024 annual report. Shareholders should note that the resolution is advisory only and does not bind the directors or company. However, if more than 25% of the votes cast on this resolution are no votes and should the company receive 25% or more no votes on the rem report tabled at next year's Annual General Meeting, the company would then be required under the Corporations Act to put a further resolution to members at that meeting to convene a subsequent meeting of members at which all directors of the company would be required to stand for reelection. In accordance with the ASX listing rules and the Corporations Act, the company will disregard any votes cast on this resolution by or on behalf of any member of the key management personnel of the company, those details are included in the rem report, or a closely related party of any key management personnel, a closely related party such as a KMP, including close family members and companies the KMP controls, or a person voting as proxy for a member of the KMP or any of their closely related parties, subject to the exceptions set out in Page 3 of the notice of meeting. I invite any questions in relation to the rem report of the company. There are no questions. The total number of valid proxies which have been received and recorded and are exercisable for this resolution are now shown on the screen. The exact wording of resolution 1 is set out in the notice of meeting. I now put that resolution to the meeting. The vote on this resolution will be conducted by way of poll immediately prior to the conclusion of the meeting. Resolution 2. Bear with me. We've got 8 resolutions today to get through. The reelection of Director Bruce Coombes as executive director of the company. ASX Listing Rule 14.5 provides that an entity which has directors must hold an election of directors at each Annual General Meeting. The constitution sets out the requirements for determining which directors are to retire by rotation at an AGM. Bruce Coombes, who has served as a director since 15th of February 2018, retires by rotation and seeks reelection. Resolution 2 provides for the reelection of Bruce Coombes as a director of the company in accordance with the constitution and ASX Listing Rule 14.5. Bruce Coombes retires from office at the conclusion of the meeting and, being eligible, offers himself for reelection as a director of the company. If shareholders do not approve the reelection of Bruce Coombes, he will then cease to be a director at the conclusion of the meeting. Biographical background information about Bruce is set out in the notice of meeting. I invite any questions in relation to the reelection of Bruce Coombes as a director of the company. And there are no questions from the floor. So total number of valid proxies which have been received and recorded and are exercisable for this resolution are shown now on the screen. The exact wording of resolution 2 is set out in the notice of meeting, and I put that resolution to the meeting. The vote on this resolution will be conducted by way of poll immediately prior to the conclusion of the meeting. Thank you for that. Resolution 3. The next item on the agenda is the ratification of the issue of 42,500,000 fully paid ordinary shares under ASX Listing Rule 7.1 and ASX Listing Rule 7.1A by the company on the terms and conditions set out in the explanatory statement accompanying the notice of meeting. As announced by the company on 3rd of May 2024, the company successfully completed a placement to certain institutional and professional investors of 42,500,000 new fully paid ordinary shares at an issued price of $0.08 per share to raise $3.4 million before costs. These new fully paid ordinary shares were issued on the 9th of May 2024. Listing Rule 7.1 provides that the company must not, subject to a number of exceptions, issue or agree to issue equity securities during any 12-month period in excess of 15% of its issued capital at the commencement of that 12-month period without shareholder approval. Additionally, ASX Listing Rule 7.1A enables the company to seek shareholder approval by special resolution passed at an AGM to have the capacity to issue up to that number of equity securities equivalent to an additional 10% of the number of ordinary shares on issue by way of placement over a 12-month period. This is in addition to the existing 15% placement capacity permitted by ASX Listing Rule 7.1. The placement was undertaken within the aggregate of the company's 15% placement capacity and 10% placement capacity. Under ASX Listing Rule 7.4, shareholders can ratify an issue of securities after the event. This has the effect of refreshing the company's ability to issue shares within these limits without requiring shareholder approval at any time of the -- at the time of any future issue. The purpose of resolution 3 is for shareholders to ratify, pursuant to ASX Listing Rule 7.4, the previous issue of 42,500,000 fully paid ordinary shares on 9 May 2024, issued pursuant to the company's existing capacity under ASX Listing Rule 7.1 and 7.1A to restore the company's ability to issue further shares within the next 12 months. In accordance with ASX listing rules, the company will disregard any votes cast on this resolution by or on behalf of any person who participated in the placement and any associate of those persons subject to the exceptions set out on Page 4 of the notice of meeting. I invite any questions in relation to the issue of shares under the placement or in relation to resolution 3. And there are no questions? No. Then we'll -- the total number of valid proxies received and recorded and are exercisable for this resolution is shown now on the screen. The exact wording of resolution 3 is set out in the notice of meeting, and I put that resolution to the meeting. As in the other resolutions, the vote of the resolution will be conducted by way of poll immediately following the conclusion of the meeting. In accordance with ASX listing rules under resolution 4, I now defer the chairing responsibilities of this resolution to Company Secretary Simon Yeandle, given I'm the subject of these resolutions. Over to you, Simon.

The next item on the agenda is the approval of participation of Dale Smorgon, a director of the company, in the placement. As mentioned earlier, the company successfully completed the placement of 42,500,000 placement shares on 3rd of May 2024. The resolution seeks approval for the issue of up to 4,375,000 shares to Dale Smorgon and/or his associates at an issue price of $0.08 each on the same terms as all other placement participants other than the delay in the timing of the issue due to the requirement for shareholder approval. ASX Listing Rule 10.11 requires a listed company to obtain shareholder approval prior to the issue of securities to a related party of the company. A related party includes a director of the company. In accordance with the ASX listing rules, the company will disregard any votes cast on this resolution by or on behalf of Dale Smorgon, an associate of Dale Smorgon and any other person who is expected to participate in or who will obtain a material benefit as a result of the proposed issue of the securities to Dale Smorgon, except a benefit solely by reason of being a holder of ordinary securities in the entity and/or any associate of those persons, subject to the exceptions set out on Page 5 of the notice of meeting. I invite any questions in relation to the issue of shares to Dale Smorgon under the placement. There are none. Before I put the motion to a vote, I advise that the total number of valid proxies which have been received and recorded and are exercisable for this resolution are shown on the screen. The exact wording of resolution 4 is set out in the notice of meeting, and I now put that resolution to the meeting. The vote on this resolution will be conducted by way of poll immediately prior to the conclusion of the meeting. I will now hand back to Dale to chair the remainder of the meeting.

Thanks, Simon. Thank you, Simon. Just complete the next resolution, resolution 5, ratification of the issue of ordinary shares to Win Finance No. 506 Pty Ltd. The next item is the ratification of those shares to Win Finance No. 506 Pty Ltd under ASX Listing Rule 7.4 on the terms and conditions set out in the explanatory statement accompanying the notice of meeting. As announced by the company on 21 December 2023, the company finalized an agreement with the Wingate Corporate Investments group for a $10 million funding facility. As part of the consideration payable by the company for the establishment of this facility, the company agreed to issue 5,671,351 warrants to Wingate entity, Win Finance No. 506 Pty Ltd, each Wingate warrant exercisable into 1 ordinary share of the company. The Wingate warrants were subject -- were subsequently exercised on the 14th of June 2024 and converted into 5,671,351 ordinary shares in the company, which were issued on the 19th of June 2024. ASX Listing Rule 7.4 allows shareholders of a listed entity to ratify an issue of equity securities after it has been made or agreed to be made. If they do, the issue is taken to have been approved under ASX Listing Rule 7.1 and so does not reduce the entity's capacity to issue further equity securities without shareholder approval under that rule. The purpose of this Resolution 5 is for shareholders to ratify pursuant to ASX Listing Rule 7.4 the previous issue of the 5,671,351 fully paid ordinary shares on 19th of June 2024 issued pursuant to the company's existing capacity under ASX Listing Rules 7.1 and 7.1A to restore the company's ability to issue further shares within the next 12 months. In accordance with the ASX listing rules, the company will disregard any votes cast on this resolution by or on behalf of Win Finance No. 506 Pty Ltd or an associate of Win Finance No. 506 Pty Ltd or any other person who has participated or is expected to participate in or who has obtained or will obtain a material benefit as a result of the proposed issue, except a benefit solely by reason of being a holder of ordinary securities in the company or any associates of that person or these persons, subject, of course, to the exceptions set on Page 5 of the notice of meeting. I invite any questions in relation to the issue of these shares or specifically to resolution 5. No questions. Up on the screen, you'll see the total number of valid proxies that have been received and recorded and are exercisable for this resolution. The exact wording of resolution 5 is set out in the notice of meeting, and I now put that resolution to the meeting. And of course, the vote on this resolution will be conducted by way of poll immediately following the conclusion of the meeting. Resolution #6. The next item is the approval of issue of performance rights to Bruce Coombes, a director of the company. Following a detailed review by the Board of the Rem Committee -- of the remuneration of Bruce Coombes, the company is proposing to issue up to a maximum of 700,000 performance rights to Bruce Coombes under the QuickFee performance rights and option plan, or the PROP, as part of Bruce's FY '25 long-term incentive plan. Details of Bruce's remuneration for the financial year ended 30 June '24 are set out in the remuneration report on the 30th of June 2024 annual financial report of the company. In the Board's view, the performance rights being granted to Bruce Coombes provide an incentive for him to ensure the company continues to deliver sustainable growth. ASX Listing Rule 10.14 requires a listed company to obtain shareholder approval prior to the issue of securities under an employee incentive scheme to a director of the company. The purpose of resolution 6 is for shareholders to approve the issue of a maximum of 700,000 performance rights to Bruce Coombes or his respective nominees under the plan. In accordance with the ASX Listing Rules and the Corporations Act, the company will disregard any votes on this resolution cast by a person referred to in ASX Listing Rules 10.14.1, 10.14.2, 10.14.3, including Bruce Coombes and each other director of the company who are eligible to participate in the QuickFee PROP or an associate of that person or those persons or a key member of the management personnel -- key management personnel as at the time of the resolution is voted on at the meeting or any other of their closely related parties as a proxy, subject, of course, to the exceptions set out on Page 7 on the notice of meeting. I invite questions, which there are none. Thank you. The total number of proxies is now shown on the screen. The exact wording of resolution 6 is set out in the notice of meeting, and I put that resolution to the meeting. The vote on the resolution will be conducted by way of poll immediately following the conclusion of the meeting. I'll pause for a drink. Resolution #7, 2 more to go, is the item relating to the performance rights and option plan, also referred to as the PROP. QuickFee has an existing employee incentive scheme called the QuickFee performance rights and option plan, under which certain eligible employees and directors of the company may be granted performance rights and options. The PROP was adopted prior to QuickFee listing on the ASX in July 2019 and was previously approved by shareholders at the AGM of the company on the 21st of December 2021. A minor amendment to the PROP was made on the 9th of September 2023 for changes to the Corps Act 2021 -- 2001, rather, and to address the requirements of Division 1A of Part 7.12 of the Act. ASX Listing Rule 7.2 exception 13 excludes from restrictions in Listing Rule 7.1 and 7.1A the issue of any securities to employees under the PROP provided that the PROP is renewed every 3 years. The maximum number of securities proposed to be issued under the PROP in accordance with the ASX Listing Rule 7.2 exception 13 following shareholder approval over the 3 years the PROP is approved is 30 million performance rights or options being approximately 9% of the share capital of the company. It is not envisaged that the maximum number of securities for which approval is sought will be issued immediately. The purpose of resolution 7 is for shareholders to approve and adopt the PROP, authorize the directors to do all things necessary to operate the PROP, including making such modifications as the directors consider appropriate to take account of any applicable regulatory requirements and best practice and authorize the directors to establish and do all things necessary to operate such further plans for the benefit of employees in different jurisdictions based on the PROP, subject to such modifications as may be necessary or desirable to take account of overseas securities laws, exchange control and tax legislation, provided that any ordinary shares of the company made available under such further plans are treated as counting against the limits on individual and overall participation in the PROP. In accordance with the ASX listing rules and the Corporations Act, the company will disregard any votes cast on the resolution by or on behalf of any person who is eligible to participate in the performance rights and option plan or an associate of those persons, subject to the exceptions set out on Page 8 of the notice of meeting. I invite questions in relation to resolution 7. There are none. Thank you. Before I put the motion to a vote, I advise the total number of valid proxies have been received and recorded are on the screen. The exact wording of the resolution is set out in the notice of meeting, and I put that resolution to the meeting and the vote of the -- will be conducted at the conclusion of the meeting. Okay. Resolution #8, and then you've probably heard about enough of my voice for the day. The last item relates to the refreshing of the company's 10% placement capacity. ASX Listing Rule 7.1A enables eligible entities to seek shareholder approval by special resolution to issue equity securities equivalent to an additional 10% of the number of ordinary securities on issue over a 12-month period after the Annual General Meeting. This is in addition to the existing 15% placement capacity permitted under ASX Listing Rule 7.1. The company is an eligible entity as it is not included in the ASX 300 and it has a market capitalization of less than $300 million. If this resolution is approved, the company will have the benefit of the additional 10% placement capacity even if it subsequently ceases to be an eligible entity in the following 12 months. Accordingly, resolution 8 is seeking approval by shareholders by special resolution for the issue of up to the number of equity securities as calculated under the formula in ASX Listing Rule 7.1A.2 at an issue price to be -- an issue price as permitted by ASX Listing Rule 7.1A.3 to such persons as the Board may determine on the terms set out in the notice of meeting. The effect of the resolution 8 will be to allow the directors to issue equity securities under ASX Listing Rule 7.1A during the 12 months after this meeting without using the company's 15% placement capacity under ASX Listing Rule 7.1. I invite questions in relation to the resolution. Thank you. There are none. The proxies that are received and recorded on the screen. They're shown. The exact wording of resolution 8 is set out in the notice of meeting, and I now put that resolution to the meeting. And the vote of this resolution will be conducted by way of poll immediately following the conclusion of the meeting. This resolution requires 75% or more votes cast to be in favor for the resolution to pass. Thank you, everyone, for your patience through the task of those resolutions. I appreciate the participation of those shareholders that took the time to vote. We'll open the floor for any questions. And there have been none received via -- in advance of the meeting, and there are none in the room today. So let's move directly to the poll then. No other resolutions have been put to the meeting. I declare that the poll for the voting on each resolution is now open and if the shareholders or representatives of shareholders present at the meeting could provide your voting card for collection and for counting. [Voting]

Now that all cards have been collected, I'll briefly adjourn the meeting while the votes can be counted, and I'll reconvene the meeting in approximately 5 minutes to announce the results. And given we have no voting cards, we are just going to adjourn the meeting -- reconvene the meeting. The votes have been counted, and I declare that each of the resolutions have been passed by the requisite majority. The exact results of each resolution are being displayed on the screen now, and these results will be announced to the ASX following the meeting.

We'll be displaying that once we've got a few minutes.

Okay. So that will be displayed in a few moments. Okay. Terrific. Thanks, Simon. So we'll close the meeting formally, ladies and gentlemen. Thank you very much. That completes the formal business. We're pleased, of course, to take any questions you have of the company after the meeting. We thank you all for your attendance. We thank you all for your support, your participation. And certainly, thanks to the management team and my fellow directors of QuickFee. And we look forward to continued growth and success as we move forward. Thank you very much.