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2025 Annual Report

Annual Report30 June 2025BAIHealthcare

Being AI Limited



Annual Report

For the year ended 31 March 2025




1

Table of Contents




Chair’s Report 2

Consolidated Financial Statements 5

Independent Auditor’s Report 47

Shareholder and Statutory Information 52

Board of Directors 60

Corporate Governance Statement 62

Directory 67


Being AI Limited
Chair’s Report




2

Being AI Limited faced significant challenges in the fiscal year ending 31 March 2025 (FY25), marked by

financial losses, governance instability and operational setbacks. This Annual Report outlines the key

financial results, operational challenges and strategic developments undertaken to stabilise the

Company.

Summary of Key Financial Results

(Figures are quoted in NZ dollars)

• Revenue: $40.10 million

• Operating EBITDA loss: $3.94 million

• Net loss before tax: $11.98 million

• Negative equity: $6.99 million

Financial Overview

Being AI Limited recorded revenue of $40.10 million. Despite efforts to streamline operations and raise

external capital to fund growth, the Company delivered an operating EBITDA loss of $3.94 million. A

goodwill impairment of $ 6.46 million and $1.1 million impairment of the Excalibur Loan then

contributed to taking that EBITDA loss down to a net loss before tax of $11.98 million. While Send Global

continued to perform well in FY25, its contributions were insufficient to offset the overheads incurred by

the wider Being AI group.

The$6.46 million goodwill impairment arose from:

• the close down of Project Treehouse

1

after it failed to secure external funding or implement pilot

customer programmes ($5.96 million); and

• a projection that the value of Filecorp future cash flows did not justify the value of goodwill in the

balance sheet

2

($0.5 million).

In addition to the goodwill impairment, Being AI Limited made a provision of $1.1 million against the $2

million loan extended to Excalibur, an entity owned by Sean Joyce, Being AI’s original chairman.

This provision was made due to uncertainties regarding the value of the security backing the loan. The

security consists of Being AI shares and Arria NLG shares owned by Excalibur. The value of Being AI

shares has declined, and the Company has been unable to determine the current market value of the

Arria NLG shares. The loan is scheduled for repayment at the end of 2028, and Being AI Limited will

continue to pursue all opportunities to collect the full amount.

The impact of these impairments has reduced equity to negative $6.99 million as illustrated in the

accompanying Consolidated Statement of Changes in Equity.

Our Auditors issued a qualified audit report in the year ended 31 March 2024 in relation to the $10.96

million value of the BCL goodwill asset and the related $5.6 million contingent consideration liability

disclosed at 31 March 2024. Both balances have now been disposed of and accordingly do not remain in

the 31 March 2025 balance sheet. However, the impact of this prior year qualification extends to certain


1

In this document Project Treehouse refers to Agentic Commerce as well as the Company’s other AI initiatives.

2

Under NZ IAS 36, each year Being AI is required to assess the carrying value of certain assets in the Company’s

balance sheet.

Being AI Limited
Chair’s Report (continued)




3

opening balances in 2025 (page 47). This qualification does not impact the closing balances for the 2025

Financial Year.

Operational Challenges

The financial year was marked by significant operational challenges, including multiple changes in

directors and substantial cash burn to support Project Treehouse. These factors contributed to the

Company's financial difficulties and operational inefficiencies.

Listing rule compliance

Due to circumstances beyond Being AI’s control, the resignation of former directors, Brett O’Riley and

Andy Higgs, led to the Company failing to comply with NZX Listing Rule 2.1.1 as the Board then lacked

sufficient independent directors. As a result, Being AI Limited was placed in a trading halt from 3

February to 14 April 2025 awaiting the appointment of new independent directors, further impacting its

ability to operate effectively.

On 31 March 2025, the appointment of independent directors, Michael Stiassny, Greg Cross and Steve

Phillips brought the Company back into compliance. They joined existing non-independent board

members, Katherine Allsopp-Smith and Paul Forno.

Inability to attract and secure investment

Being AI sought to raise new capital for deployment and investment across the Group’s business

divisions. The new capital was sought through a share purchase plan for existing BAI shareholders and a

concurrent general offer to non-BAI shareholders. Of the 9,340,000 new ordinary shares in BAI on offer,

BAI received subscriptions for 570,025 new shares (being just over 6% of the shares offered), raising only

$350,000 before legal costs.


Subsequently BAI explored opportunities to raise new capital from external sources for Project

Treehouse. While there was some initial non-binding interest from related-party investors (not

connected to Wilshire), no reasonable offers in the interests of all BAI shareholders were received.

BAI Subsidiaries Update

Being Consultants

Being Consultants failed to make any substantive progress towards its revenue budgets in the eight

months to November 2024. It was subsequently sold to 2384 LP, as previously disclosed in the half year

results released on 30 September 2024.

Being Ventures

Being Ventures did not identify suitable investment opportunities aligned with its original goal of

transforming legacy businesses through AI, and therefore has not contributed to the Company's financial

performance.

Tymestack

Tymestack provides an AI-driven price optimisation engine that minimises gross margin losses in retail

price markdowns, boosts sales and reduces waste.

In the 30 September interim accounts, the Group recognised a full $240,000 impairment of its

investment in Tymestack. This impairment was due to uncertainties surrounding Tymestack’s ability to

Being AI Limited
Chair’s Report (continued)




4

secure sufficient funding to complete development of the engine, which is crucial for a successful market

launch and to cover operational costs until the Company becomes cash flow self-sufficient.

On 31 October 2024 the parties agreed a variation to the original agreements in which the Company’s

investment in Tymestack was changed to a 10% shareholding with no further obligation to provide

additional funding or services.

Strategic Review and Post-Balance Date Developments

Since the balance date, the new Board has focused on a strategic review aimed at stabilising the

Company's financial position. To date, key actions taken include significantly reducing personnel,

implementing operational cost savings, closing Project Treehouse, and divesting Being Education,

allowing the Company to move back to profitability. This strategic review is ongoing.

Project Treehouse

A comprehensive review determined that the project would continue to incur negative cash flows.

Consequently, Project Treehouse was shut down on 16 May 2025, to prevent further losses and protect

shareholder value.

At that time, Being AI accepted the resignations of: Group Chief Executive Officer, David McDonald; Chief

Technology Officer, Nicolas Fourrier; and the remaining personnel supporting Project Treehouse.

Being Education

In May 2025, Being Education was divested to Crimson Education Group, a strategic move that

eliminated $3.9 million in Being AI group debt owed to Wilshire Treasury, along with a portion of trading

liabilities.

Additional Funding

On 11 April 2025, Being AI secured $500,000 of funding from Wilshire Treasury which was used to retire

bank debt, further improving the Company's financial position.

Current Situation

Being AI Limited now consists of two primary operating companies, New Zealand Mail Limited and

Filecorp Limited, and their holding company Send Global. This Group continues to operate profitably.

Strategic Outlook

The Board of Directors’ strategic review is now focused on the future of the Being AI Group including its

management, assets and remaining group of companies, Send Global. Further market announcements

will be made in due course.


Michael Stiassny

Chair

Being AI Limited

Being AI Limited
Consolidated Statement of Profit or Loss and Other Comprehensive

Income

For the year ended 31 March 2025



The accompanying notes form part of these consolidated financial statements and should be read in conjunction with them.

5

Note2025 2024

NZ$000 NZ$000

Revenue540,99340,409

Cost of sales(31,865)(32,193)

Gross Profit9,1288,216

Other operating income6771135

Finance income7598

Expenses

Labour related expenses7.1(7,908)(3,372)

Depreciation and amortisation expenses7(1,023)(1,064)

Property expenses(214)(183)

Other operating expenses7(4,335)(1,826)

Profit/(loss) from operations(3,506)2,004

Finance expense7.2(1,469)(616)

Gain on disposal of subsidiary26806-

Impairment of goodwill17(6,462)-

Provision for impairment of term receivable32.3(1,100)-

Share of net loss of Tymestack.ai28(125)-

Impairment of investment in Tymestack.ai28(124)-

Reverse acquisition share based payment29-(1,693)

Reverse listing expenses-(67)

Loss before income tax(11,980)(372)

Income tax (expense)/benefit9463(697)

Loss for the year after taxation(11,517)(1,069)

Other comprehensive income--

Total comprehensive loss for the year

(11,517)(1,069)

Loss per share

Basic and diluted loss per share (NZ$)11(0.1144)(0.0106)

Being AI Limited
Consolidated Statement of Changes in Equity

For the year ended 31 March 2025


The accompanying notes form part of these consolidated financial statements and should be read in conjunction with them.

6




Note

Share

capital

Share based

Payments

Accumulated

lossesTotal equity

NZ$000 NZ$000 NZ$000 NZ$000

Balance at 1 April 20233,944-1,6535,597

Loss for the year--(1,069)(1,069)

Total comprehensive income for the year--(1,069)(1,069)

Transactions with owners in their capacity as owners

Dividends declared10--(2,001)(2,001)

Share buyback 10,21(3,943)-(1,370)(5,313)

Shares issued on reverse acquisition291,631--1,631

Shares issued on business acquisition5,000--5,000

Balance at 31 March 20246,632-(2,787)3,845

Balance at 1 April 20246,632-(2,787)3,845

Loss for the year--(11,517)(11,517)

Total comprehensive income for the year--(11,517)(11,517)

Transactions with owners in their capacity as owners

Shares issued during the period21342--342

Less: share issue costs(50)--(50)

Share options issued22,23-392-392

Balance at 31 March 20256,924392(14,304)(6,988)

Being AI Limited
Consolidated Statement of Financial Position

As at 31 March 2025


The accompanying notes form part of these consolidated financial statements and should be read in conjunction with them.

7



These consolidated financial statements were approved by the Board on 30 June 2025.

Signed on behalf of the Board by:




Michael Stiassny Stephen Phillips

Director Director

Note2025 2024

NZ$000 NZ$000

Current assets

Cash and cash equivalents

12

4102,215

Receivables and other current assets

13

4,4714,055

Inventories

14

5111,217

Total current assets5,3927,487

Non-current assets

Term deposit-22

Term receivable

32.3

9002,000

Property, plant and equipment152,6452,745

Right-of-use assets16.15,9867,926

Goodwill - Being Consultants Limited17-10,962

Goodwill - other entities174,1144,614

Other intangible assets171,4691,405

Bond502-

Deferred tax asset9.3567151

Total non-current assets16,18329,825

Total assets21,57537,312

Current liabilities

Trade payables and other current liabilities185,87113,089

Taxation payable12656

Borrowings193,8115,897

Lease liabilities16.2285450

Total current liabilities9,97920,092

Non-current liabilities

Borrowings1912,3741

Student bonds135150

Contingent consideration20-5,600

Lease liabilities16.26,0757,624

Total non-current liabilities18,58413,375

Total liabilities28,56333,467

Net assets

(6,988)3,845

Equity

Share capital216,9246,632

Share based payments reserve22392-

Accumulated losses(14,304)(2,787)

Total equity

(6,988)3,845

Being AI Limited
Consolidated Statement of Cash Flows

For the year ended 31 March 2025


The accompanying notes form part of these consolidated financial statements and should be read in conjunction with them.

8



Note2025 2024

NZ$000 NZ$000

Cash flows from operating activities

Receipts from customers40,64741,999

Government grants received410113

Payments to suppliers and employees(43,218)(40,746)

Payment of bond(502)-

Income tax (paid)/refunded(600)72

Net cash (used in)/from operating activities30(3,263)1,438

Cash flows from investing activities

Interest received7598

Proceeds from term deposit22-

Payments for property, plant and equipment(199)(69)

Receipts from sale of property plant and equipment2236

Payments for intangible assets(76)(7)

Investment in Tymestack.ai(249)-

Payment for acquisition of business(200)-

Net cash outflows on disposal of subsidiary(176)-

Payments for related party short-term loans-(1,864)

Cash received from business acquisition-21

Net cash used in investing activities(781)(1,785)

Cash flows from financing activities

Proceeds from borrowings29,3848,299

Principal repayment of borrowings(19,136)(7,545)

Interest paid on borrowings(981)(375)

Principal repayment of lease liabilities(315)(420)

Interest paid on lease liabilities(451)(144)

Payment of related party payable(6,554)-

Proceeds from issue of share capital342-

Payment of share issue costs(50)-

Dividends paid-(734)

Net cash used in financing activities2,239(919)

Net decrease in cash and cash equivalents(1,805)(1,266)

Cash and cash equivalents at the beginning of the year2,2153,481

Cash and cash equivalents at the end of the year

124102,215

Being AI Limited
Notes to the Consolidated Financial Statements

For the year ended 31 March 2025



9

1. General information

Being AI Limited (‘Being AI’ or ‘the Company’) and its subsidiaries (together ‘the Group’) are limited

liability companies, incorporated under the Companies Act 1993 and domiciled in New Zealand.

The Group was formed by a reverse acquisition on 28 March 2024 of Being AI Limited by Send Global

Limited (and subsidiaries) and AGE Limited (refer note 29).

Being AI Limited was formed to create a Group positioned for the business transformation impact that

will result from AI and similar advanced technologies. The Group’s strategy was to build, advise, and

invest in this disruption. After the May 2025 closure of Project Treehouse (note 35.2) and divestment of

the Education Group (note 35.1), Being AI Limited now consists of two primary operating companies,

New Zealand Mail Limited and Filecorp Limited, and their holding company Send Global. The Being AI

Board is currently undertaking a review of the Group’s strategic options, and these will be announced to

the market in due course.

Being AI is the legal holding company for the Group. Details of subsidiary companies and their principal

activities are set out in note 25.

The address of the Company’s registered office is 14 Honan Place, Avondale, Auckland 1026.

2. Material accounting policy information

The following are the material accounting policies adopted by the Group in the preparation and

presentation of the consolidated financial statements. There have been no changes in accounting

policies since the previous year end unless otherwise stated.

2.1 Statement of compliance and reporting framework

The consolidated financial statements have been prepared in accordance with Generally Accepted

Accounting Practice in New Zealand (‘NZ GAAP’). The Group is a for-profit entity for the purposes of

complying with NZ GAAP. The consolidated financial statements comply with New Zealand equivalents to

IFRS Accounting Standards (‘NZ IFRS’), International Financial Reporting Standards (‘IFRS’), and other

applicable New Zealand Financial Reporting Standards as appropriate for for-profit entities.

The Company is an FMC reporting entity under the Financial Markets Conduct Act 2013. The Company is

listed on the NZX Main Board ("NZX"). These consolidated financial statements have been prepared in

accordance with the requirements of the Financial Markets Conduct Act 2013 and the NZX Main Board

Listing Rules.

2.2 Basis of preparation

The consolidated financial statements have been prepared on a historical cost basis apart from those

items measured at fair value as described below. Historical cost is generally based on the fair value of the

consideration given in exchange for goods and services.

The consolidated financial statements are presented in New Zealand dollars which is the Group’s

functional and presentation currency, rounded to the nearest thousand dollars unless otherwise stated.

2.3 Principles of consolidation

The consolidated financial statements incorporate the financial statements of the Company and entities

controlled by the Company. Control is achieved when the Company:

• has power over the investee;

Being AI Limited
Notes to the Consolidated Financial Statements (continued)

For the year ended 31 March 2025



10

• is exposed, or has rights, to variable returns from its involvement with the investee; and

• has the ability to use its power to affect its returns.

The Company reassesses whether or not it controls an investee if facts and circumstances indicate that

there are changes to one or more of the three elements of control listed above.

Where necessary, adjustments are made to the financial statements of subsidiaries to bring their

accounting policies in line with the Group's accounting policies.

All intragroup assets, liabilities, equity, income, expenses, and cash flows relating to transactions

between members of the Group are eliminated in full on consolidation.

Business combinations

Acquisitions of businesses are accounted for using the acquisition method unless they involve entities or

businesses under common control.

The consideration transferred in a business combination is measured at fair value. Acquisition related

costs are generally recognised in profit or loss as incurred.

At the acquisition date, the identifiable assets acquired, and the liabilities assumed are recognised at

their fair value at the acquisition date, except that deferred tax assets or liabilities, and liabilities related

to employee benefit arrangements, are recognised and measured in accordance with NZ IAS 12 Income

Taxes and NZ IAS 19 Employee Benefits respectively.

Goodwill is measured as the excess of the sum of the consideration transferred over the net of the

acquisition‑date amounts of the identifiable assets acquired, and the liabilities assumed.

Investments in associates

An associate is an entity over which the Group has significant influence and that is neither a subsidiary

nor an interest in a joint venture. Significant influence is the power to participate in the financial and

operating policy decisions of the investee but is not control or joint control over those policies.

The results and assets and liabilities of associates are incorporated in these financial statements using

the equity method of accounting. Under the equity method, an investment in an associate is recognised

initially in the Consolidated Statement of Financial Position at cost and adjusted thereafter to recognise

the Group’s share of the profit or loss and other comprehensive income of the associate. When the

Group’s share of losses of an associate exceeds the Group’s interest in that associate, the Group

discontinues recognising its share of further losses. Additional losses are recognised only to the extent

that the Group has incurred legal or constructive obligations or made payments on behalf of the

associate.

When a group entity transacts with an associate, profits and losses resulting from the transactions with

the associate are recognised in the Group’s consolidated financial statements only to the extent of

interests in the associate that are not related to the Group.

2.4 Revenue recognition

The Group derived revenue from the following major sources:

• Education services;

• Courier, business mail and logistics services; and

• Filing solutions.

Revenue is measured based on the consideration to which the Group expects to be entitled in a contract

with a customer and excludes amounts collected on behalf of third parties, such as goods and service tax

and customs duties.

Being AI Limited
Notes to the Consolidated Financial Statements (continued)

For the year ended 31 March 2025



11

Education services

The Group provides an online virtual and physical school. School fees and revenue from related services

are recognised over the school term or year to which they relate. Revenues for school activities are

recognised at a point in time when the activity is completed. Revenue from the sale of goods, such as

stationery and school lunches, are recognised at a point in time upon delivery when control has been

transferred to the buyer and collectability of the related receivable is reasonably assured.

Courier, business mail and logistics services

The Group provides domestic courier and freight services; domestic and international unified logistics;

business mail services; and mail house services.

Revenue from the delivery of courier, business mail and logistics services is recognised as the related

performance obligations are fulfilled. Customers are invoiced at the end of each month which covers all

services provided up to that date.

Revenue from the sale of stamps and postage included envelopes are recognised at a point in time upon

delivery when control has been transferred to the buyer and collectability of the related receivable is

reasonably assured.

Filing solutions

The Group provides filing solutions and consumables.

Revenue from the sale of filing solutions and consumables is recognised at a point in time upon delivery

when control has been transferred to the buyer and collectability of the related receivable is reasonably

assured.

2.5 Income Tax

Income tax expense or benefit comprises both current and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before

tax’ as reported in the Statement of Profit or Loss and Other Comprehensive Income because of items of

income or expense that are taxable or deductible in other years and items that are never taxable or

deductible.

Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and

liabilities in the financial statements and the corresponding tax bases used in the computation of taxable

profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax

assets are recognised for all deductible temporary differences to the extent that it is probable that

taxable profits will be available against which those deductible temporary differences can be utilised.

Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the

initial recognition (other than in a business combination) of assets and liabilities in a transaction that

affects neither the taxable profit nor the accounting profit, unless the initial recognition gives rise to

equal amounts of taxable and deductible temporary differences.

2.6 Goods and services tax

Revenue, expenses, assets, and liabilities are recognised net of the amount of goods and services tax

(GST) except:

• where the amount of GST incurred is not recovered from the Inland Revenue Department, it is

recognised as part of the cost of acquisition of an asset or as part of an item of expense; or

• for receivables and payables, which are recognised inclusive of GST.

Being AI Limited
Notes to the Consolidated Financial Statements (continued)

For the year ended 31 March 2025



12

2.7 Inventories

Inventories are stated at the lower of cost and net realisable value. Costs of inventories are determined

on a weighted average basis. Net realisable value represents the estimated selling price for inventories in

the ordinary course of business, less all estimated costs of completion and costs necessary to make the

sale.

2.8 Property, plant and equipment

Each class of property, plant and equipment is measured at historical cost less accumulated depreciation

and accumulated impairment losses.

Depreciation is recognised on a straight-line basis so as to write off the cost of assets less their residual

values, over their useful lives. The estimated useful lives, residual values and depreciation method are

reviewed at the end of each reporting period.

The following depreciation rates are applied:

Class of asset Depreciation

rates

Buildings 2% - 5%

Leasehold improvements 5% - 20%

Plant and equipment 3% - 33%

Office furniture & equipment 8% - 50%

An item of property, plant and equipment is derecognised upon disposal or when no future economic

benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the

disposal or retirement of an item of property, plant and equipment is determined as the difference

between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying

amount is greater than its estimated recoverable amount.

2.9 Intangible assets

Acquired intangible assets with finite useful lives are carried at cost less accumulated amortisation and

accumulated impairment losses. Amortisation is recognised on a straight-line basis over their estimated

useful lives. Intangible assets with indefinite useful lives that are acquired separately are carried at cost

less accumulated impairment losses.

The following amortisation rates are applied:

Class of asset Amortisation

rates

Brands Indefinite life

Trademarks 10% - 20%

Customer relationships 50% - 100%

Computer software 20%

Goodwill is measured at cost less accumulated impairment losses. Goodwill is allocated to cash-

generating units for the purpose of impairment testing and is tested annually for impairment. Goodwill is

reviewed at each reporting date to determine whether there is any objective evidence of impairment.

Being AI Limited
Notes to the Consolidated Financial Statements (continued)

For the year ended 31 March 2025



13

2.10 Leases

The Group recognises a right-of-use asset and a corresponding lease liability with respect to all lease

arrangements in which it is the lessee, except for short-term leases (defined as leases with a lease term

of 12 months or less) and lease of low value assets.

The lease liability is initially measured at the present value of the future lease payments, discounted by

using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its

incremental borrowing rate. The lease liability is subsequently measured at amortised cost using the

effective interest method. It is remeasured when there is a change in future lease payments arising from

a change in an index or rate or if the Group changes its assessment of whether it will exercise a purchase,

extension of termination option, with a corresponding adjustment made to the carrying value of the

right-of-use asset.

The right-of-use assets comprise the initial measurement of the corresponding lease liability. They are

subsequently measured at cost less accumulated depreciation and impairment losses. Right-of-use assets

are depreciated over the shorter period of lease term and the useful life of the underlying asset.

2.11 Financial instruments

The Group’s financial assets at amortised cost include cash and cash equivalents, and trade and other

receivables. Cash and cash equivalents include cash in hand and deposits held at call with banks.

The Group’s financial liabilities include trade and other payables, borrowings, lease liabilities and

contingent consideration.

2.12 Share based payment transactions

The fair value of share options issued to directors, employees and consultants is determined at the grant

date and is expensed on a straight-line basis over the vesting period, based on the Group’s estimate of

the share options that will eventually vest, with a corresponding increase in equity.

At the end of each reporting period, the Group revises its estimate of the number of share options

expected to vest. The impact of the revision of the original estimates, if any, is recognised in profit or loss

with a corresponding adjustment to the share-based payments reserve.

3. Application of new and revised New Zealand International Financial Reporting

Standards (NZ IFRSs)

3.1 New and amended standards and interpretations

All new and amended standards were implemented and the impact deemed not to be material.

The Group has not early adopted any standards, interpretations or amendments that have been issued

but are not yet effective. Early adoption of these new standards, interpretations or amendments would

not have had a material impact on the financial result or financial position of the Group.

Being AI Limited
Notes to the Consolidated Financial Statements (continued)

For the year ended 31 March 2025



14

4. Critical accounting estimates and judgements

In the application of the Group’s accounting policies, which are described in note 2, the directors of the

Group are required to make judgements, estimates and assumptions about the carrying amounts of

assets and liabilities that are not readily apparent from other sources. The estimates and associated

assumptions are based on historical experience and other factors that are considered to be relevant.

Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting

estimates are recognised in the period in which the estimate is revised if the revision affects only that

period, or in the period of the revision and future periods if the revision affects both current and future

periods. Below are the critical accounting judgements.

4.1 Going concern

The consolidated financial statements have been prepared on a going concern basis, which assumes that

the Group has the intention and ability to continue its operations for the foreseeable future.

The Group incurred an after-tax loss of $11.5 million in the year 31 March 2025 (2024: $1.1 million loss).

The Group’s net cash outflow from operating activities was $3.3 million (2024: $1.4 million cash inflow).

At the reporting date the Group had cash of $0.4 million (2024: $2.2 million), negative working capital of

$4.6 million (2024: $12.6 million negative) and net liabilities of $7.0 million (2024: net assets of $3.8

million). Liabilities included borrowings of $16.2 million (2024: $5.9 million) of which $3.8 million were

current (2024: $5.9 million) and $12.4 million were non-current (2024: $nil).

The net loss for the year included the following one-off items: impairments of assets of $7.7 million and a

gain on disposal of subsidiary of $806,000.

At 31 March 2025 the Group had borrowed $7.63 million from Wilshire Treasury Limited (note 19) (2024:

$5.64 million). Wilshire Treasury Limited (‘Wilshire’) is 100% owned by the Christian Family Trust Limited

which is controlled by Katherine Allsopp-Smith and Evan Christian. The loan is repayable on 1 April 2026.

However, Wilshire has confirmed that it will not call upon this loan until the Group has the ability to

make payment.

Subsequent to the reporting date the Company divested its education services segment, including its

subsidiary AGE Limited (note 35.1). The divestment eliminated the education services segment’s debt of

$3.9 million, strengthening the Group’s balance sheet.

Also subsequent to the reporting date the Board decided to shut down its artificial intelligence initiatives,

including Project Treehouse (note 35.2).

The Group’s remaining operating businesses, following this divestment of the education group and

closure of Project Treehouse, has a long history of profitability and positive cashflows. The Group expects

reduced corporate overheads with the reduced size of the remaining operations.

The Group forecasts it will be compliant with all bank covenants during the next 12 months. The Group is

scheduled to repay $2 million of working capital debt by the end of September 2025 and renew its

$250,000 quarterly amortisation of its remaining $5.25 million of bank term debt in January 2026. The

Group is on track to honour these commitments.

The financial statements do not include any adjustments relating to the recoverability or classification of

recorded asset amounts or classification of liabilities that might be necessary should the Group not be

able to generate sufficient revenue and profits to return to positive equity and remain as a going

concern. The conditions above indicate the existence of a material uncertainty that may cast significant

doubt about the Group's ability to continue as a going concern.

Being AI Limited
Notes to the Consolidated Financial Statements (continued)

For the year ended 31 March 2025



15

However, the considered view of the Board is that, after making due enquiries and considering relevant

factors, there is a reasonable expectation that the Group will have access to adequate resources and

commitments from its borrowers, that will enable it to meet its financial obligations for the foreseeable

future.

For this reason, the Board considers the adoption of the going concern basis in preparing the

consolidated financial statements for the year ended 31 March 2025 to be appropriate. The Board has

reached this conclusion having regard to circumstances which it considers likely to affect the Group

during the period of at least one year from the date of approval of these consolidated financial

statements, and to circumstances which it considers will occur after that date which will affect the

validity of the going concern basis.

4.2 Impairment of non-financial assets

All assets are assessed for impairment at each reporting date by evaluating whether indicators of

impairment exist in relation to the continued use of the asset by the Group. Impairment triggers include

technology changes, adverse changes in the economic or political environment and future product

expectations. If an indicator of impairment exists, the recoverable amount of the asset is determined.

The cash‑generating unit (CGU) to which goodwill has been allocated is tested annually for impairment

or sooner if there is an indication that the unit may be impaired. Judgement is required to determine the

value of the CGU and whether there has been an impairment.

4.3 Fair value of contingent consideration

The fair value of the contingent consideration financial liability for the acquisition of Being Consultants

(note 20) is measured at fair value which is reassessed at each reporting date. The fair value of the

contingent consideration takes into account the likelihood of the share price milestones being achieved,

discounted at an appropriate rate. In assessing the fair value of the contingent consideration, judgement

is required to determine the likely compensation that will become payable in the future and the

appropriate discount rate.

The reassessment of fair value by an independent valuer at the half year reporting date, 30 September

2024, resulted in a significant fair value adjustment increasing the level of contingent consideration by

$32.1 million. The contingent consideration was not revalued as of the sale date of Being Consultants

Limited (note 26), however based on share price movements of the Company, it is expected that the

contingent consideration would have reduced significantly at that date. Accordingly, the contingent

consideration movement for the period has been netted off against the gain on sale of Being Consultants

Limited given that the cancellation of the contingent consideration agreement formed part of the sale of

Being Consultants Limited.

4.4 Determining the lease term and incremental borrowing rate

In determining the lease term, judgement is required in determining whether it is reasonably certain that

an extension option will be exercised. The Group considers all relevant factors that create an economic

incentive for it to exercise the extension. After the commencement date, the Group reassesses the lease

term if there is a significant event or change in circumstances that is within its control and affects its

ability to exercise or not to exercise the option to extend (note 16).

Being AI Limited
Notes to the Consolidated Financial Statements (continued)

For the year ended 31 March 2025



16

5. Revenue


The details above disaggregate the Group's revenue from contracts with customers into primary markets

and major service lines. All revenue is generated in New Zealand.

6. Other income


7. Expenses

The profit or loss for the year includes the following expenses:



2025

2024

NZ$000

NZ$000

Education services

2,945

2,126

Courier, business mail and logistics services

35,718

36,160

Filing solutions

2,104

2,123

Consultancy

226

-

Total revenue

40,993

40,409

2025

2024

NZ$000

NZ$000

Ministry of Education grant

321

113

Rent income received

135

-

Legal settlement

130

-

Callaghan innovation grant

89

-

Other income

96

22

771

135

2025 2024

NZ$000 NZ$000

Expenses relating to short term leases(100)(191)

Net foreign currency losses(13)(3)

Shareholder management fee-(400)

Depreciation and amortisation expenses

Depreciation of property, plant and equipment (note 15)(273)(246)

Depreciation of right of use assets (note 16.1)(541)(491)

Amortisation of intangible assets (note 17)(209)(327)

Being AI Limited
Notes to the Consolidated Financial Statements (continued)

For the year ended 31 March 2025



17


7.1 Labour related expenses


7.2 Finance costs



For the audit of the consolidated financial statements by

the current auditor, William Buck

(90)

(85)

Other agreed-upon procedures engagements

For tax advice - paid to previous auditor, BDO

-

(60)

For other accounting advice - paid to previous auditor, BDO

-

(67)

-

(127)

(90)

(212)

Fees incurred for services provided by the auditor

Total fees incurred for services provided by the auditor

2025

2024

NZ$000

NZ$000

Salary and wages

(6,967)

(3,048)

Employer Kiwisaver contributions

(177)

(89)

Employee profit share

(383)

(235)

Share based payments (note 22)

(381)

-

(7,908)

(3,372)

2025

2024

NZ$000

NZ$000

Interest expense on bank loans

(630)

(174)

Interest expense on related party loans

(388)

(298)

Interest expense on lease liabilities

(451)

(144)

(1,469)

(616)

Being AI Limited
Notes to the Consolidated Financial Statements (continued)

For the year ended 31 March 2025



18

8. Segment information

Prior to the reverse acquisition on 28 March 2024, the Group provided courier, business mail and

logistics services, filing solutions and education services. All of these services were provided in New

Zealand. Following acquisitions and renaming on 28 March 2024, the Group embarked on a strategy to

provide diversified artificial intelligence (‘AI’) and advanced technology related services.

All of these services are provided in New Zealand.

Operating segments are reported in a manner consistent with the internal reporting provided to the

chief operating decision maker. The Group has identified its operating segments based on the internal

reports reviewed and used by the Chief Operating Decision Maker (‘CODM’), being the Board of

Directors, in assessing the Group’s performance and in determining the allocation of resources.





Courier, mailFilingEducationAI customerCorporate / Total

& logisticssolutionsservicessolutionsunallocated

NZ$000 NZ$000 NZ$000 NZ$000 NZ$000 NZ$000

Total revenue35,7182,1042,945226-40,993

Operating EBITDA3,76494448(600)(6,839)(2,683)

Finance income1-2-7275

Finance costs(56)-(436)(14)(963)(1,469)

Depreciation and amortisation(127)(83)(477)(1)(335)(1,023)

Gain on disposal of subsidairy---696110806

Impairment of goodwill-(500)-(5,962)-(6,462)

Provision for impairment of term

receivable----(1,100)(1,100)

Impairment of investment in

Tymestack.ai---(124)-(124)

Net profit/(loss) before taxation3,582361(863)(6,005)(9,055)(11,980)

Income tax benefit1469(61)-369463

Net profit/(loss) for the year3,728370(924)(6,005)(8,686)(11,517)

2025

Courier, mail

Filing

Education

AI customer

Corporate /

Total

& logistics

solutions

services

solutions

unallocated

NZ$000

NZ$000

NZ$000

NZ$000

NZ$000

NZ$000

Total revenue

36,160

2,123

2,126

-

-

40,409

Operating EBITDA

3,704

789

(158)

-

(1,365)

2,970

Finance income

5

-

-

-

93

98

Finance costs

(39)

(2)

(248)

-

(327)

(616)

Depreciation and amortisation

(146)

(194)

(400)

-

(324)

(1,064)

Reverse acquisition - share based

payment

-

-

-

-

(1,693)

(1,693)

Reverse listing expenses

-

-

-

-

(67)

(67)

Net profit/(loss) before taxation

3,524

593

(806)

-

(3,683)

(372)

Income tax expense

(889)

124

125

-

(57)

(697)

Net profit/(loss) for the year

2,635

717

(681)

-

(3,740)

(1,069)

2024

Being AI Limited
Notes to the Consolidated Financial Statements (continued)

For the year ended 31 March 2025



19





The ‘AI customer solutions’ segment was previously named ‘Consulting’. The segment was renamed to

better describe the nature of its operations. There has been no reclassification of the operations that are

included in this segment.

On 29 November 2024 the Group sold Being Consultants Limited and its consulting business (refer note

26), while retaining the agentic learning and agentic marketplace operations, all of which had made up

the AI customer solutions segment. The sale of Being Consultants Limited has not been recognised

separately as a discontinued operation because it did not represent a separate major line of business.

In May 2025 the Group divested of the education services group (note 35.1) and shut down its artificial

intelligence initiatives, including Project Treehouse (note 35.2). Neither of these were treated as a

disposal group in these financial statements because the Board’s decisions for their sale and closure

were only made after the reporting date. The goodwill allocated to the AI customer solutions cash-

generating unit at 31 March 2025 was considered to be impaired at 31 March 2025 due to the decision,

subsequent to the reporting date, to shut down this segment (note 17.1).

8.1 Information about major customers

For the year ended 31 March 2025 there were no customers who accounted for more than 10% of the

Group's total sales (31 March 2024: one, value of sales to this customer: $6.53 million).

9. Taxation

9.1 Income tax expense

The analysis of income tax expense is as follows:



Courier, mailFilingEducationAI customerCorporate / Total

& logisticssolutionsservicessolutionsunallocated

NZ$000 NZ$000 NZ$000 NZ$000 NZ$000 NZ$000

Segment assets7,646(470)4,393809,92621,575

Segment liabilities(3,886)(172)(5,931)-(18,574)(28,563)

2025

Mail &FilingEducationAI customerCorporate / Total

couriersolutionsservicessolutionsunallocated

NZ$000 NZ$000 NZ$000 NZ$000 NZ$000 NZ$000

Segment assets7,7932,22812,05210,8834,35637,312

Segment liabilities(7,307)(3,445)(12,665)(5,883)(4,167)(33,467)

2024

2025 2024

Current income taxNZ$000 NZ$000

Current tax charge37472

In respect of prior years(84)214

(47)686

Deferred tax expense/(benefit)(416)11

Income tax expense/(benefit)(463)697

Being AI Limited
Notes to the Consolidated Financial Statements (continued)

For the year ended 31 March 2025



20

9.2 Reconciliation of income tax expense

The charge for the year can be reconciled to the loss before tax as follows:


9.3 Deferred tax





2025

2024

NZ$000

NZ$000

Profit/(loss) before income tax

(11,980)

(372)

Prima facie tax at 28% (2024: 28%)

(3,354)

(104)

Non-deductible expenses

1,809

885

Recognition of tax losses previously not recognised

-

(298)

Tax effect of tax losses not recognised

1,166

-

Adjustments recognised in the current year in relation to prior years

(84)

214

Income tax expense/(benefit)

(463)

697

NZ$000NZ$000NZ$000

2025

Deferred tax assets/(liabilities) in relation to:

Inventories36 - 36

Provisions- 308 308

Accrued expenses187 1 188

Property, plant & equipment(119) 119 -

Right-of-use assets(2,220) 1,948 (272)

Lease liabilities2,261 (1,959) 302

Other6 (1) 5

151 416 567

Opening

balance

Recognised in

profit or loss

Closing

balance

NZ$000NZ$000NZ$000

2024

Deferred tax assets/(liabilities) in relation to:

Inventories62 (26) 36

Accrued expenses172 15 187

Property, plant & equipment(100) (19) (119)

Right-of-use assets(858) (1,362) (2,220)

Lease liabilities879 1,382 2,261

Other7 (1) 6

162 (11) 151

Opening

balance

Recognised in

profit or loss

Closing

balance

Being AI Limited
Notes to the Consolidated Financial Statements (continued)

For the year ended 31 March 2025



21

9.4 Unrecognised tax losses



9.5 Imputation credits


10. Distributions


11. Earnings/(loss) per share


The loss and weighted average number of ordinary shares used in the calculation of earnings per share

are as follows:


On 6 September 2024 the Company undertook a 10 to 1 share consolidation (refer note 21). The

earnings per share calculation for both the current and comparative periods reflects the impact of this

share consolidation.

The 2.9 million share options on issue at the reporting date were not considered to be dilutive due to the

Group’s net loss (2024: none).

2025 2024

NZ$000 NZ$000

Tax losses

3,424-Tax losses for which no deferred tax asset has been recognised

2025

2024

NZ$000

NZ$000

Imputation credits available for use in subsequent periods

-

1,451

Share

capital

Retained

earnings

Share

capital

Retained

earnings

NZ$000

NZ$000

NZ$000

NZ$000

Declared during the year

Fully imputed dividend of 1.25 cents per share

-

-

-

536

Fully imputed dividend of 3.4 cents per share

-

-

-

1,465

-

-

-

2,002

Share buy back and distribution. 9,147,523 shares

acquired and cancelled at a price of 58.08 cents per

share which includes a fully imputed dividend of 14.97

cents per cancelled share

-

-

3,943

1,370

-

-

3,943

3,371

2025

2024

2025

2024

Basic and diluted earnings/(loss) per share (NZ$)

(0.1144)

(0.0106)

(11,517)

(1,069)

186,570

100,713

Profit/(loss) from continuing operations (NZ$000)

Weighted average number of ordinary shares used in the calculation of

basic and diluted earnings/(loss) loss per share ('000)

Being AI Limited
Notes to the Consolidated Financial Statements (continued)

For the year ended 31 March 2025



22

12. Cash and cash equivalents


13. Receivables and other current assets



The standard credit terms on sales are 20

th

of the month following invoice. Generally, no interest is

charged on outstanding trade receivables but the Group reserves the right to charge interest on

significantly overdue balances. Due to the short-term nature of current receivables, their carrying

amount is considered to be the same as their fair value.

13.1 Allowance for expected credit loss



The Group’s receivables aging is as follows:



2025 2024

NZ$000 NZ$000

Cash at bank4102,215

4102,215

2025 2024

NZ$000 NZ$000

Trade receivables3,8913,987

Prepayments11755

GST receivable-13

Other current assets463-

4,4714,055

2025 2024

NZ$000 NZ$000

Reconciliation for allowance for expected credit losses

Balance at the beginning of the year(19) (14)

Impairment losses recognised on receivables(66) (5)

Amounts written off as uncollectable3 -

Balance at the end of the year(82)(19)

NZ$000Current

Less than 30

days past due

30 to 60 days

past due

More than 60

days past dueTotal

2025

Trade receivables3,51235826773,973

Loss allowance--(5)(77)(82)

3,891

2024

Trade receivables3,8611291064,006

Loss allowance

--(1)(18)(19)

3,987

Being AI Limited
Notes to the Consolidated Financial Statements (continued)

For the year ended 31 March 2025



23

14. Inventories


$8,818,277 of inventory was included as an expense in the net profit for the current year (2024:

$8,319,904). In 2025, $3,292 of inventory was written down to net realisable value. $10,417 of that was

as a reduction in provision and $7,125 was written off and scrapped (2024: $124,874 and $159,243

respectively).

15. Property, plant and equipment




2025 2024

NZ$000 NZ$000

Finished goods5111,217

5111,217

Plant &

equipment

Office

furniture &

equipment

Buildings &

improvements

Land

Total

NZ$000

NZ$000

NZ$000

NZ$000

NZ$000

Cost:

At 1 April 2023

298



1,270



2,560



-



4,128



Additions

-



66



1



-



67



Disposals

(36)



-



-



-



(36)



At 31 March 2024

262



1,336



2,561



-



4,159



Additions

34



143



17



-



194



Disposal of subsidiary (note 26)

-



(7)



-



-



(7)



Disposals

-



(14)



-



-



(14)



At 31 March 2025

296

1,458

2,578

-

4,332

Accumulated depreciation:

At 1 April 2023

(110)



(755)



(304)



-



(1,169)



Depreciation expense

(26)



(111)



(109)



-



(246)



Disposals

1



-



-



-



1



At 31 March 2024

(135)



(866)



(413)



-



(1,414)



Depreciation expense

(24)



(120)



(129)



-



(273)



Disposals

-



-



-



-



-



At 31 March 2025

(159)

(986)

(542)

-

(1,687)

Carrying amount:

At 31 March 2025

137



472



2,036



-



2,645



At 31 March 2024

127



470



2,148



-



2,745



At 1 April 2023

188



515



2,256



-



2,959


Being AI Limited
Notes to the Consolidated Financial Statements (continued)

For the year ended 31 March 2025



24

16. Leases

The Group leases premises and leasehold improvements to premises.

16.1 Right-of-use asset


The average lease term is 16.4 years (2024: 13 years). The average IBR rate is 8.09% (2024: 7.11%).

16.2 Lease liabilities




Leasehold

improvements PropertyTotal

NZ$000 NZ$000 NZ$000

Cost:

At 1 April 20232,074 1,591 3,665

Additions5,276 75 5,351

At 31 March 20247,350 1,666 9,016

Additions1 - 1

Modifications(2,074) - (2,074)

At 31 March 20255,277 1,666 6,943

Accumulated depreciation:

At 1 April 2023(466) (133) (599)

Depreciation expense(207) (284) (491)

At 31 March 2024(673) (417) (1,090)

Depreciation expense(264) (277) (541)

Modifications674 - 674

At 31 March 2025(263) (694) (957)

Carrying amount:

At 31 March 20255,014 972 5,986

At 31 March 20246,677 1,249 7,926

At 1 April 20231,608 1,458 3,066

2025

2024

NZ$000

NZ$000

Maturity analysis - contractual undiscounted cash flows

Up to one year

786

1,006

One to two years

806

1,026

Two to five years

2,001

3,021

More than five years

8,905

10,071

Total undiscounted lease liabilities at reporting date

12,498

15,124

Less: future finance charges

(6,138)

(7,050)

Total discounted lease liabilities at reporting date

6,360

8,074

Being AI Limited
Notes to the Consolidated Financial Statements (continued)

For the year ended 31 March 2025



25


17. Intangible assets






2025

2024

NZ$000

NZ$000

Lease liabilities included in the Consolidated Statement of Financial Position

Current

285

450

Non-current

6,075

7,624

6,360

8,074

2025

2024

NZ$000

NZ$000

Goodwill - Being Consultants Limited

-



10,962



Goodwill - other entities

4,114



4,614



4,114



15,576



Other intangible assets

1,469



1,405



5,583

16,981

NZ$000NZ$000NZ$000NZ$000NZ$000

Cost:

At 1 April 20234,614 2,451 2,098 - 9,163

Business acquisition10,962 15 - 29 11,006

At 31 March 202415,576 2,466 2,098 29 20,169

Additions- 72 - 6 78

Business acquisition (note 27)- 195 - - 195

Eliminated on disposal of

subsidiary (note 26)(5,000) - - - (5,000)

At 31 March 202510,5762,7332,0983515,442

Accumulated depreciation:

At 1 April 2023- (1,048) (1,813) - (2,861)

Amortisation expense- (126) (201) - (327)

At 31 March 2024- (1,174) (2,014) - (3,188)

Amortisation expense- (116) (82) (11) (209)

Impairment(6,462) - - - (6,462)

At 31 March 2025(6,462)(1,290)(2,096)(11)(9,859)

Carrying amount:

At 31 March 20254,114 1,443 2 24 5,583

At 31 March 202415,576 1,292 84 29 16,981

At 1 April 20234,614 1,403 285 - 6,302

Goodwill

Brands &

trademarks

Customer

relationships Website Total

Being AI Limited
Notes to the Consolidated Financial Statements (continued)

For the year ended 31 March 2025



26

17.1 Impairment testing for cash-generating units containing goodwill and other intangibles with

indefinite life

Goodwill and other intangibles with indefinite life are allocated to the following cash generating units for

the purpose of impairment testing.



The Directors have assessed the goodwill and the other intangibles with an indefinite life, for impairment

as at the reporting date.

For impairment testing, cash flows were projected on actual operating results, the 12-month budget and

multi-year forecasts reviewed and approved by the Board of Directors and based on the assumptions and

methodologies detailed below.

AI customer solutions

$5.0 million of the goodwill in the AI customer solutions CGU related to consulting services and was

disposed of during the year as part of the sale of BCL (note 26).

The remaining $6.0 million of goodwill in the AI customer solutions CGU related to the agentic learning

operations. At the reporting date the Board was undertaking a strategic review of its operations and on

16 May 2025 the Board announced that it had decided to close Project Treehouse, BAI’s artificial

intelligence initiative (note 35.2). As a result of this decision, the Board concluded the goodwill allocated

to the AI customer solutions CGU was impaired at the reporting date. A full impairment of the goodwill

has been recognised reducing the recoverable value of the CGU to $80,000.

In 2024 the calculated value of the CGU was determined based on a value in use calculation using cash

flow projections based on financial projections covering a five-year period and a pre-tax discount rate of

20.3% per annum. Solely for the purposes of this assessment, the anticipated annual revenue growth of

the CGU was projected at 20% to 35% in the first five years with a terminal revenue increase of 7.5% per

annum. Gross margin percentages were projected to grow and then remain consistent for the last four

years of the period. Other operating costs were projected to increase by 25% in the first two years of the

period and then remain consistent for the remaining periods projected.

Courier, business mail and logistics services

The calculated value of the cash generating unit is determined based on a value in use calculation using

cash flow projections based on financial projections covering a five-year period and a pre-tax discount

rate of 19.9% per annum (2024: 19.9%). Solely for the purposes of this assessment, anticipated annual

revenue growth of the CGU has been projected as remaining constant for the five-year period and in the

calculation of terminal value (2024: remaining constant). Gross margin percentages are also projected as

remaining consistent throughout the period, and other operating costs to remain constant through the

first four-year period and then decrease by 5% in the final year (2024: gross margin percentages

remaining consistent throughout the period, and other operating costs decreasing by 15% in the first

year, 9% in the second year and then remaining constant for the remaining three years projected).

2025

2024

NZ$000

NZ$000

Goodwill

AI customer solutions

-

10,962

Courier, business mail and logistics services

2,334

2,334

Filing solutions

1,780

2,280

4,114

15,576

Being AI Limited
Notes to the Consolidated Financial Statements (continued)

For the year ended 31 March 2025



27

The following adjustment to the key assumptions would individually reduce the NZM recoverable value

to the level of its carrying value:

• a 53% reduction in the projected total revenue over the 5-year period

• a 122% increase in operating expenses over the 5-year period

• an increase in the pretax discount rate to 150%

Filing solutions

The calculated value of the cash generating unit is determined based on a value in use calculation using

cash flow projections based on financial projections covering a five-year period and a pre-tax discount

rate of 19.9% per annum (2024 19.9%). Solely for the purposes of this assessment, anticipated revenue

of the CGU is projected to fall 2% annually for the five-year period and then remain constant with

respect to the calculation of terminal value (2024: remaining constant for the five-year period and in the

calculation of terminal value). Gross margin percentages are projected to remain consistent throughout

the period at 62.4% (2024: remaining constant), and other operating costs are projected to remain

constant and then decrease by 12.5% in FY30 (2024: decrease by 4% in the first year, 15% in the second

year and to then remain constant for the remaining three years).

The recoverable value of the Filing solutions CGU was assessed as being $2.4 million. As a result of this

analysis the Group recognised an impairment of $500,000 against the goodwill allocated to the Filing

solutions CGU.

18. Trade payables and other current liabilities


The carrying amount of trade payables and other current liabilities are assumed to be the same as fair

value due to the short-term nature of these amounts.


2025 2024

NZ$000 NZ$000

Trade payables4,0183,249

Accruals1,5082,422

GST payable14240

Related party payables (note 32.3)1876,616

Unearned income13698

Other payables3-

PAYE Payable-55

Employee benefits-9

5,87113,089

Being AI Limited
Notes to the Consolidated Financial Statements (continued)

For the year ended 31 March 2025



28

19. Borrowings


All borrowings are denominated in NZD.

19.1 Related party loans


The related party loans are with the related parties in the table below.


The full $7.63 million of the related party loan from Wilshire Treasury Limited is payable by Send Global

(31 March 2024: $3.51 million payable by Send Global, $1.75 million payable by AGE and $382,000 is

payable by Being Consultants). The loan is repayable on 1 April 2026. Interest is charged at the current

ANZ Bank business overdraft rate. The loan is secured by a general security agreement granted by Send

Global to Wilshire Treasury Limited and by a guarantee from AGE.

Details of the loan facilities at 31 March 2024 were as follows:

- the $1.75 million payable by AGE to Wilshire Treasury Limited could be terminated on three

months’ notice. The loan was unsecured but Wilshire Treasury Limited was entitled to register a

PPSR charge over AGE to secure the loan. AGE had agreed to allow its assets to be charged by the

ANZ Bank as security for a banking facility provided by ANZ Bank to Wilshire Treasury Limited and

others if requested. Interest was charged at a 0.10% margin above the Wilshire Treasury Limited

borrowing rate from the ANZ Bank;

- the $382,000 loan payable by Being Consultants to Wilshire Treasury Limited was secured by a first

ranking general security agreement over Being Consultants’ present and after acquired personal

property. The loan was repayable on demand and incurred interest at a rate equal to the aggregate

of the ANZ Bank 90 Day Bank Bill Rate plus a margin of 2.75% per annum;

- the $3.51 million loan payable by Send Global to Wilshire Treasury Limited was for a one-year term

to 26 March 2025. Interest was charged at the current ANZ Bank business overdraft rate. The loan

Note2025 2024

NZ$000 NZ$000

Related party loans19.17,6315,888

Bank loans (secured)19.28,526-

Other borrowings2810

Total borrowings

16,1855,898

Current3,8115,897

Non-current12,3741

16,1855,898

2025

2024

NZ$000

NZ$000

Balance at 1 April

5,888

4,425

Proceeds from loans

17,824

3,069

Repayment of loans

(16,081)

(1,606)

Balance at 31 March

7,631

5,888

2025 2024

NZ$000 NZ$000

Wilshire Treasury Limited7,6315,648

Te Turanga Ukaipo Charitable Trust -240

Total related party loans7,6315,888

Being AI Limited
Notes to the Consolidated Financial Statements (continued)

For the year ended 31 March 2025



29

was secured by a general security agreement granted by Send Global to Wilshire Treasury Limited

and by a guarantee from AGE;

- the related party loan payable to the Te Turanga Ukaipo Charitable Trust was unsecured and

payable on demand. No interest was charged on this loan.

The weighted average interest rates on the related party loans during the period was 5.93% (2024:

8.29%).

19.2 Bank loans


Send Global Limited and New Zealand Mail Limited have entered into new facility agreements with ANZ

Bank. The new agreements provide:

- a $2 million commercial flexi facility reducing to $1,000,000 on 30 September 2025. The facility is

repayable on demand. Interest is payable at the ANZ commercial flexi facility floating rate plus a

0.44% margin;

- a $5.5 million term facility which has a three-year term to 31 March 2027. The facility is to be drawn

down in tranches with fixed interest for the fixed period of each tranche at the applicable BKBM

rate for that fixed period plus a 2.65% margin. The facility was fully drawn down in April 2024;

- a $3 million term facility which is repayable on 30 September 2025. Interest is fixed for the period of

each the loan at the applicable BKBM rate for that fixed period plus a 2.65% margin; and

- two financial guarantee facilities totalling $975,596.

The new facilities are secured by:

- unlimited guarantees and indemnities provided by Wilshire Holdings Limited and St Johns Trust

Limited covering the obligations of Send Global Limited, New Zealand Mail Limited and Filecorp NZ

Limited;

- a cross guarantee and indemnity provided by Send Global Limited, Filecorp NZ Limited and New

Zealand Mail Limited;

- general security agreements provided by Send Global and New Zealand Mail Limited; and

- a deed of postponement (postponing their debt to Send Global Limited) provided by Wilshire

Holdings Limited.

The weighted average interest rates on the bank loans during the year was 7.34% (2024: 8.32%).


2025

2024

NZ$000

NZ$000

Balance at 1 April

-

-

Proceeds from loans

11,000

5,700

Repayment of loans

(2,474)

(5,700)

Balance at 31 March

8,526

-

Being AI Limited
Notes to the Consolidated Financial Statements (continued)

For the year ended 31 March 2025



30

20. Contingent consideration


On 28 March 2024 the Company acquired 100% of the issued share capital of Being Consultants and its

100% owned subsidiaries, Being Labs Limited and Being Ventures Limited. The Company paid an initial

$5 million to acquire the shares in Being Consultants plus contingent consideration with an assessed fair

value at acquisition date of $5.6 million.

Under NZ IFRS the contingent consideration is required to be measured at fair value through profit and

loss (‘FVTPL’) with any movements in the fair value being included in the net profit or loss.

The contingent consideration was subject to the Company achieving certain share price milestones post-

acquisition. The valuation of the contingent consideration takes into account the likelihood of the share

price milestones being achieved, discounted at an appropriate rate.

The contingent consideration was valued at acquisition date and subsequently at 30 September 2024 by

a qualified independent valuer. At 30 September 2024 the contingent consideration liability was valued

at $37.73 million resulting in a $32.13 million fair value adjustment which was included in the net loss

reported in the Group’s interim financial statements. The valuations included assumptions about the

future share price of the Company’s listed shares.

On 29 November 2024 the Company sold its investment in Being Consultants (note 26) and the

contingent consideration liability was cancelled as part of the sale. The contingent consideration was

revalued based on an external revaluation for the half year result (six months to 30 September 2024)

which resulted in a significant rise of $32.1 million to the liability. The contingent consideration was not

revalued up to the date of the sale of Being Consultants Ltd, however based on share price movements

in the intervening period, management believe the movement from 1 April 2024 to 29 November 2024

would have been significantly less than the half year movement recorded. The values allocated to the

actual consideration on the sale of Being Consultants Limited were determined between two informed

parties who understood the future potential of the specific operations involved. As a result, the Board

has reversed the valuation at 30 September 2024 when recognising the gain on sale of Being Consultants

Limited.

21. Share capital



2025

2024

NZ$000

NZ$000

Balance at 1 April

5,600

-

Recognised on acquisition of subsidiaries

-

5,600

Cancellation on sale of BCL (note 26)

(5,600)

-

-

5,600

2025 2024

NZ$000 NZ$000

At 1 April6,632 3,944

Ordinary shares issued342-

Less: share issue costs(50)-

Share buyback -(3,943)

Shares issued on reverse acquisition (notes 29)-1,631

Shares issued on business acquisition- 5,000

At 31 March6,924 6,632

Being AI Limited
Notes to the Consolidated Financial Statements (continued)

For the year ended 31 March 2025



31

The table below details the movement in ordinary shares issued by the Company.


On 6 September 2024 the Company undertook a share consolidation of 10 shares into 1.

On 30 September 2024 the Company issued 477,711 new fully paid ordinary shares at an issue price of

$0.60 per share.

On 18 October 2024 the Company issued 92,314 new fully paid ordinary shares at an issue price of $0.60

per share.

All ordinary shares on issue are fully paid, have equal voting rights, and share equally in dividends and

any surplus on winding up.

22. Share based payments reserve




2025

2024

'000

'000

Ordinary shares as at 1 April

1,868,019



19,149



10 for 1 share consolidation

(1,681,217)



-



Ordinary shares issued

570



-



Ordinary shares issued pre reverse acquisition

-



2,350



Shares issued to Excalibur Partners Limited to settle debt

-



30,720



Shares issued to directors to settle outstanding directors fees due

-



15,800



Shares issued on reverse acquisition (note 29)

-



1,600,000



Shares issued on business acquisition

-



200,000



Ordinary shares as at 31 March

187,372



1,868,019



2025

2024

NZ$000

NZ$000

Balance as at 1 April

Share options issued

472



-



Share options forfeited

(80)



-



Balance as at 31 March

392



-



Share based payments are included in:

Employee benefit expense

381



-

Consultant expenses

11



-

392



-

Being AI Limited
Notes to the Consolidated Financial Statements (continued)

For the year ended 31 March 2025



32

23. Share options

The Company has a share option scheme for selected directors, employees and consultants of the

Company and its subsidiaries to purchase ordinary shares in the Company.


On 6 September 2024 the Company undertook a share consolidation of 10 shares into 1 (note 21). This

resulted in a corresponding consolidation of 10 share options into 1. The number of options issued and

the weighted average exercise price shown in the table above, have been adjusted to reflect the impact

of the share consolidation.

Each share options converts into one ordinary share of the Company on exercise. No amounts are paid or

payable by the recipient on receipt of the option. The options carry no rights to dividends and no voting

rights. Options may be exercised at any time from the date of vesting to the date of their expiry.

Subject to continued employment, most option holders will be able to exercise one fifth of the options

granted to them on each anniversary of the date of issue for five consecutive years. The exercise periods

for these vested options expire five years after the relevant vesting date.

For 200,000 of the options issued on 25 September 2024, one quarter of the options granted to the

option holder were able to be exercised on each anniversary of the date of their issue for four

consecutive years. These options expired four years from the relevant vesting date. The option holder

has ceased employment with the Group and these options have expired.

The weighted average contractual life of the share options outstanding at 31 March 2025 was 7.2 years.

23.1 Fair value of share options granted in the period

The fair values of the share options granted during the period (fair values adjusted to reflect the 10 to 1

share consolidation) are:

Options granted 27 May 2024


Balance as at 1 April

-

-

-

-

Granted during the year

4,937,000

$0.383

-

-

Forfeited during the year

(2,000,000)

$0.318

-

-

Balance as at 31 March

2,937,000

$0.427

-

-

Exercisable at 31 March

-

-

-

-

2025

2024

Number of

Options

Weighted

average

exercise price

Number of

Options

Weighted

average

exercise price

Vesting

date

$0.25 strike

price

$0.90 strike

price

3.61m0.63m

$$

Tranche 127 May 250.6000.390

Tranche 227 May 260.6000.410

Tranche 327 May 270.6100.420

Tranche 427 May 280.6200.430

Tranche 527 May 290.6200.440

Number of options granted (adjusted

for 10 to 1 share consolidation)

Fair value per option

Being AI Limited
Notes to the Consolidated Financial Statements (continued)

For the year ended 31 March 2025



33


Options granted 25 September 2024


Options were valued using the Black-Scholes option pricing model. The key inputs used in valuing the

options (adjusted to reflect the impact of the 10 to 1 share consolidation) are detailed in the table below.


24. Financial instruments

24.1 Classes and categories of financial instruments

The Group has entered into a number of non-derivative financial instruments. The Group does not have

any derivative financial instruments (2024: nil).

The carrying values of financial assets and financial liabilities measured at amortised costs are detailed in

the table below. The carrying values of these items approximate their fair value and represent the

maximum exposures for each type of financial instrument.


Vesting

date

Vesting over

5 years

Vesting over

4 years

Strike price

$0.60

$0.60

Number of options granted

0.5m

0.2m

$

$

Tranche 1

25 Sept 25

0.500

0.463

Tranche 2

25 Sept 26

0.491

0.455

Tranche 3

25 Sept 27

0.482

0.446

Tranche 4

25 Sept 28

0.473

0.438

Tranche 5

25 Sept 29

0.464

Fair value per option

Options granted

Grant date

27 May 24

25 Sept 24

Options granted (adjusted for share consolidation)

4,237,000

700,000

$0.74

$0.67

Grant date one month VWAP

$0.78

$0.74

Exercise price

$0.25 or $0.90

$0.60

Expected volatility

0.75-0.65

0.75-0.65

Option life (from vesting date)

5 years

4 or 5 years

Dividend yield

0%

0%

Average risk free interest rate

4.61% - 4.79%

3.76% - 4.19%

Discount for illiquidity

15%

15%

Share price at grant date

2025 2024

NoteNZ$000 NZ$000

Financial assets at amortised cost

Cash and cash equivalents124102,215

Receivables and other current assets134,3543,987

Total financial assets4,7646,202

Being AI Limited
Notes to the Consolidated Financial Statements (continued)

For the year ended 31 March 2025



34


The contingent consideration financial liability represents the fair value of the outstanding consideration

to be paid for the acquisition of Being Consultants. The fair value at 31 March 2024 was determined by

an independent valuer. The future contingent consideration payable was calculated using probability

adjusted potential future share prices. The contingent consideration value at various target share prices

was combined with the probability to give a probability weighted value which is then discounted back to

the valuation at the reporting date. Key inputs to the 31 March 2024 valuation model included:

• volatility over a 2-year period of 75% based on a range of small cap ASX and Nasdaq listed IT and

software businesses. The higher the volatility, the higher the fair value. If the volatility was 5%

higher/lower while all other variables were held constant, the carrying amount would increase/

decrease by $280,000;

• a discount rate of 22.5% per annum which is based off the mid-point of a range of discount rates

from four international studies into the expected rates of return required by venture capitalist

investors for “Bridge/IPO” funding rounds. The higher the discount, the lower the fair value. If the

discount was 1% higher/lower while all other variables were held constant, the carrying amount

would decrease/increase by $130,000; and

• a share price of 2.5 cent at acquisition date. At that date the Company’s shares had been

suspending since 11 December 2023 pending the successful completion of the reversion acquisition

transactions (the suspension was lifted on the first day of NZX trading following the successful

approval of the reverse acquisition transactions). The valuation considered the 2.5 cent share price

used in all the reverse acquisition related transactions as the best estimate of the current share

price to be used in the valuation. A 1 cent lower current share price (at 1.5 cents instead of 2.5

cents) would decrease the value of the contingent consideration by $3.2 million (to $2.4 million)

while a 1 cent higher share price (using 3.5 cents as the current price) would increase the value by

$3.95 million (to $9.56 million).

The fair value calculation was considered to be level 3 on the fair value hierarchy because it relied on the

key unobservable inputs noted above.

The contingent consideration was settled as part of the sale of Being Consultants (note 26).

24.2 Financial risk management objectives

The Group’s activities expose it to a variety of financial risks: market risk (including interest rate risk and

currency risk), credit and liquidity risk. The Group’s overall risk management programme focuses on the

unpredictability of financial markets and seeks to minimise potential adverse effects on its financial

performance.

Risk management is carried out under policies approved by the Board of Directors.

2025 2024

NZ$000 NZ$000

Financial liabilities at amortised cost

Trade payables and other current liabilities185,72912,994

Borrowings - current193,8115,897

Borrowings - non current1912,3741

Lease liabilities - current16.2285450

Lease liabilities - non current16.26,0757,624

Total financial liabilities28,27426,966

Financial liabilities at FVTPL

Contingent consideration - non current20-5,600

-5,600

Being AI Limited
Notes to the Consolidated Financial Statements (continued)

For the year ended 31 March 2025



35

24.3 Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates

will affect the Group’s income or the value of its holdings of financial instruments. The objective of

market risk management is to manage and control the market risk exposures within acceptable

parameters, while optimising the return on risk.

Interest rate risk is the risk that the fair value of the financial instrument or cash flows associated with

the instrument will fluctuate due to changes in market interest rates.

The Group’s interest rate risk exposure primarily relates to its exposure to variable interest rates on

borrowings. The interest rate risk exposure is currently not material enough to warrant the use of

interest rate swap contracts.

For the year ended 31 March 2025, a 1% variance in the borrowing interest rates throughout the year,

with all other variables remaining constant, would have had a $49,000 impact on the annual interest

expense payable on bank loans (2024: $18,000) and $21,000 impact on the annual interest expense

payable on related party loans (2024: $12,000).

24.4 Liquidity risk

Liquidity risk is the risk that the Group will not be able to meet its financial obligations as and when the

fall due. The Group’s liquidity risk management includes maintaining sufficient cash reserves to meet

future commitments.

The following table provides a maturity analysis of the Group’s non-derivative financial liabilities.

Contractual cash flows include contractual undiscounted principal and interest payments. The

borrowings contractual cash flows do not include interest payable because the Group’s ability to repay

the loans is flexible and the timing of repayments will impact on the amount of interest incurred.


The Group’s remaining operating businesses, following this divestment of the education group and

closure of Project Treehouse, continue to generate positive cash flows and are forecasts to meet all

future debt amortisation obligations.

24.5 Credit risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument

fails to meet its contractual obligations and arises from cash and cash equivalents, and the Group’s

receivables from customers. The Group’s maximum credit risk is represented by the carrying value of

these financial assets.

0-6 months 6-12 months 1-2 years 2-5 years 5+ years

NZ$000NZ$000NZ$000NZ$000NZ$000NZ$000NZ$000

As at 31 March 2025

Trade and other payables5,729 5,729 5,729 - - - -

Borrowings16,185 16,182 2,300 1,500 12,381 - -

Lease liability6,360 12,498 391 395 806 2,001 8,905

28,274 34,409 8,420 1,895 13,187 2,001 8,905

As at 31 March 2024

Trade and other payables12,994 12,994 12,994 - - - -

Borrowings5,898 5,898 - 5,897 1 - -

Lease liability8,074 14,883 503 503 1,026 3,020 9,831

Contingent consideration5,600 - - - - 5,600 -

32,566 33,775 13,497 6,400 1,027 8,620 9,831

Carrying

amount

Contractual

cash flows

Being AI Limited
Notes to the Consolidated Financial Statements (continued)

For the year ended 31 March 2025



36

The credit risk associated with cash transactions and deposits is managed through the Group’s policies

that limit the use of counterparties to high credit quality financial institutions.

The Group minimises concentrations of credit risk in receivables by undertaking transactions with a large

number of customers. In addition, receivable balances are monitored on an ongoing basis with the

objective that the Group’s exposure to expected credit losses is minimised.

24.6 Capital risk management

The Group manages its capital to ensure that entities in the Group will be able to continue as a going

concern while maximising the return to shareholders through the optimisation of debt and equity.

The capital structure of the Group consists of equity, comprising issued capital and retained earnings,

and debt. The Group reviews the capital structure on a regular basis to ensure that entities in the Group

are able to continue as going concerns and to fund its growth strategy.

25. Subsidiaries


All subsidiaries are domiciled in New Zealand, with the exception of Being US Limited which is

incorporated in the United States. All subsidiaries have a balance date of 31 March.


Name of subsidiaryPrincipal activity2025 2024

Send Global LimitedCourier, business mail & logistics services100%100%

New Zealand Mail LimitedCourier, business mail & logistics services100%100%

Filecorp NZ LimitedFiling solutions100%100%

G3 Property Holdings LimitedProperty management100%100%

Send New Zealand LimitedNon trading100%100%

Pete's Post LimitedNon trading100%100%

Being Bidco LimitedNon trading100%100%

Being Holdco LimitedNon trading100%-

Being US LimitedNon trading100%-

AGE LimitedEducation100%100%

Being Educated LimitedNon trading100%-

Being Education GP LimitedNon trading100%-

Manawaroa GP LimitedNon trading100%-

Fingerprint IP LimitedNon trading100%-

Treehouse Technologies LimitedNon trading100%-

Being Consultants LimitedProfessional services-100%

Being Ventures LimitedInvestment-100%

Being Labs LimitedDevelopment of AI initiatives-100%

Ownership interest held

by Group at 31 March

Being AI Limited
Notes to the Consolidated Financial Statements (continued)

For the year ended 31 March 2025



37

26. Sale of Being Consultants Limited

On 29 November 2024 the Company sold Being Consultants Limited, including its wholly owned

subsidiaries Being Labs Limited and Being Ventures Limited, back to 2384 Limited Partnership (‘2384 LP’),

the original vendor from whom the Company purchased Being Consultants Limited (and Being Labs

Limited and Being Ventures Limited) on 28 March 2024.

In consideration for the purchase of Being Consultants Limited, 2384 LP agreed to cancel the outstanding

contingent consideration it was due (note 20).

Under the agreement the Group agreed to:

• assign to 2384 LP the $737,000 owed to the Group by Being Consultants;

• pay the outstanding salary and annual leave entitlements of the three Being Consultant employees;

and

• pay a reimbursement of $115,000 to Being Consultants for future entitlements of the Being

Consultants employees.

2384 LP is an entity controlled by David McDonald (refer note 32.3).





NZ$000

Net assets disposed of:

Cash

60



Other receivables

29



Property, plant and equipment

7



Goodwill

5,000



Intercompany payables due from BCL to BAI Group

(1,126)



Trade and other payables

(28)



Net assets disposed of

3,942



Gain on disposal

806



Total consideration

4,748



Satisfied by:

Cancellation of contingent consideration liability

5,600



Assignment of intercompany payables due from BCL to BAI Group

(737)



Reimbursement for future entitlements of the BCL employees

(115)



Total consideration

4,748



Net cash outflows on disposal

Reimbursement for future entitlements of the BCL employees

(115)



Cash balance disposed of

(60)



(175)


Being AI Limited
Notes to the Consolidated Financial Statements (continued)

For the year ended 31 March 2025



38

27. Business acquisition

27.1 Villa Education Trust

On 12 April 2024 AGE acquired the education business assets of Villa Education Trust (‘VET’) which

comprise:

- the Mt Hobson Academy, an online learning platform that provides quality teaching and learning,

positive learning focused relationships and an engaging Project Based Curriculum for Years 1-10 and

follows the National Certificate of Educational Achievement (NCEA) pathway for Years 11-13;

- the rights to manage two Special Character Schools, one located in West Auckland, and one in South

Auckland;

- the informal management arrangements in respect of the Mt Hobson campus located in Kaitaia; and

- the intellectual property rights of the project-based curriculum owned by VET.

The acquisition supports the Company to expand the Being Education division, and to actively integrate

advanced technologies into Being’s online and traditional school environments.

The total purchase price for the acquisition was $200,000.

The amounts recognised in respect of the identifiable assets acquired and liabilities assumed are as set

out in the table below.


The cash paid for the acquisition was funded from available cash balances.

VET contributed $977,000 of revenue and $1,142,000 expenses to the Group’s net loss for the period

between the date of acquisition and the reporting date.


NZ$000

Net assets acquired at fair value:

Property, plant and equipment

5



Brands and trademarks

195



Net assets acquired

200



Satisfied by:

Cash

200



Total consideration

200


Being AI Limited
Notes to the Consolidated Financial Statements (continued)

For the year ended 31 March 2025



39

28. Investment in Tymestack.ai Pty Limited


On 8 June 2024 Being AI entered into agreements to coinvest in a new AI startup, Tymestack.ai Pty

Limited (“Tymestack”), an Australian company headquartered in Melbourne, Australia. Tymestack offers

a unique approach to an AI-driven price optimisation engine that reduces and even eliminates gross

margin losses in retail price markdowns while simultaneously accelerating sales and reducing waste.

Being AI subscribed for new shares in Tymestack, representing 50% of the total shares on issue. The

aggregate cost of the investment, and total issue price for the shares, was AUD1.5 million. The

consideration for the investment was to be paid over time by Being AI contributing a combination of cash

and providing supporting services to Tymestack as the new business requires.

Tymestack was initially recognised as an associate and the Group’s share of its results were included in

the Group’s consolidated results on an equity accounting basis.

On 31 October 2024 the parties agreed a variation to the original agreements in which the Group’s

investment in Tymestack was changed to a 10% shareholding with no further obligation to provide

additional funding or services to Tymestack.

The Group subsequently recognised a full impairment of its investment due to the level of uncertainty of

Tymestack securing sufficient funding to enable completion of the development of the AI-driven price

optimisation engine and a successful market launch, and to fund the ongoing operational costs until the

company becomes cash flow self-sufficient.

29. Prior period disclosure - listing expense – share-based payment

In the prior reporting period, the Company entered into a reverse listing transaction in respect of Being

Consultants, Being Ventures, Being Labs, Send Global and AGE (together the Being AI Group) in which the

Company acquired 100% of the shares of the already operating entities for total consideration of $45

million upfront plus further contingent consideration, as detailed below:

- an initial $5 million to acquire the shares in Being Consultants plus contingent consideration with an

assessed fair value at acquisition date of $5.6 million. The contingent consideration was subject to

the Company achieving certain share price milestones post-acquisition;

- $25 million to acquire the shares in Send Global; and

- $15 million to acquire the shares in AGE.

To satisfy the upfront payment of the initial $45 million purchase price, the Company issued

1,800,000,000 fully paid ordinary shares at an issue price of $0.025 per share to the vendors or their

nominees.

The appropriate accounting treatment for recognising the new Group structure was to treat Send Global,

which is the largest business in the Group, as the accounting acquirer of Being AI. This reverse acquisition

of Being AI did not represent a business combination in accordance with NZ IFRS 3 Business

Combinations because Being AI did not constitute ‘a business’, as it was a listed dormant and non-

2025

NZ$000

Balance at 1 April

-

Investment in Tymestack

249

Share of loss

(125)

Impairment of investment in Tymestack

(124)

-

Being AI Limited
Notes to the Consolidated Financial Statements (continued)

For the year ended 31 March 2025



40

operating entity. The Board of Directors therefore accounted for the reverse acquisition as a share-based

payment transaction, as an issue of shares, in accordance with NZ IFRS 2 Share-based Payments.

The share-based payment for Send Global’s acquisition of Being AI was valued at the date of the reverse

acquisition with reference to the fair value of equity instruments on issue by the Company. The share-

based payment has been expensed as a listing cost.

The financial impact of the reverse acquisition of Being AI and the resulting share-based payment, is

summarised as follows:


The difference between the consideration and net liabilities acquired is accounted for as a share-based

payment of $1.693 million and included in the net loss for the 2024 year.


NZ$000

The share based payment on acquisition was:

Consideration

1,631

Fair value of net liabilities acquired (see below)

62

Share based payment on acquisition

1,693

Net assets / (liabilities) acquired:

Cash and cash equivalents

17

Trade receivables and other current assets

38

Term deposit

22

Trade and other payables

(51)

Borrowings

(88)

Net liabilities acquired

(62)

Being AI Limited
Notes to the Consolidated Financial Statements (continued)

For the year ended 31 March 2025



41

30. Reconciliation of profit or loss after taxation with cash flow from operating

activities



2025

2024

NZ$000

NZ$000

Net loss after taxation

(11,517)

(1,069)

Adjustments for:

Finance income

(75)

(98)

Share base payments

392

1,693

Depreciation on property, plant and equipment

276

246

Depreciation on right of use assets

541

491

Amortisation of intangible assets

208

327

Gain on disposal of subsidiary

(806)

-

Impairment of goodwill in BCL

6,462

-

Impairment of term receivable

1,100

-

Share of net loss of Tymestack.ai

125

-

Impairment of investment in Tymestack.ai

124

-

Interest paid on borrowings

630

174

Interest paid on lease liabilities

451

145

Interest paid on related party borrowings

388

298

Movement in deferred tax

(416)

11

Gain on disposal of property plant and equipment

-

(1)

Movements in working capital

(Increase) / decrease in receivables and other current assets

(416)

1,421

(Increase) / decrease in inventory

706

5,092

(Increase) / decrease in bond

(502)

-

Increase / (decrease) in trade payables and other current liabilities

(7,218)

(1,506)

Increase / (decrease) in student bonds

(15)

70

(Increase) / decrease in tax benefit

(644)

758

Movement in working capital due to disposal of subsidiary

389

-

Movement in other current liabilities related to financing activities

6,554

(6,581)

Movement in working capital due to reverse listing transaction

-

(33)

Net cash received from operating activities

(3,263)

1,438

Being AI Limited
Notes to the Consolidated Financial Statements (continued)

For the year ended 31 March 2025



42

31. Reconciliation of liabilities arising from financing activities






2025

2024

NZ$000

NZ$000

Borrowings:

At 1 April

5,898

4,443

Cash:

Proceeds from borrowings

29,384

8,299

Interest paid on borrowings

(981)

(375)

Payment of principal on borrowings

(19,136)

(7,545)

Borrowings on acquisition of subsidiary

-

382

Borrowings on reverse listing transaction

-

88

Non-cash:

Interest accrued on borrowings

1,020

606

At 31 March

16,185

5,898

2025 2024

NZ$000 NZ$000

Lease liabilities:

At 1 April8,0743,141

Cash:

Payment of lease liabilities principal(315)(420)

Interest paid on lease liabilities(451)(144)

Non-cash:

Lease liabilities recognised15,276

Lease modifications(1,400)75

Interest on lease liabilities451146

At 31 March6,3608,074

Being AI Limited
Notes to the Consolidated Financial Statements (continued)

For the year ended 31 March 2025



43

32. Related parties

32.1 Directors

During the year the following were directors of the Company:


32.2 Key management personnel compensation

Key management personnel are the Directors, the Chief Executive Officer and members of the executive

leadership team.

Key management personnel compensation is set out below.


32.3 Related party transactions and balances

In 2025 the Group had the following transactions with related parties:

David McDonald (CEO and executive director),

David McDonald received remuneration as CEO of the BAI group of $415,000 (2024: nil).

On 29 November 2024 the Company entered into a share sale and purchase agreement to sell Being

Consultants Limited back to 2384 Limited Partnership (‘2384 LP’), the original vendor from whom the

Company purchased Being Consultants (note 26). 2384 Limited Partnership (‘2384 LP’) is an entity

controlled by David McDonald.

The contingent consideration liability (note 20) was due to 2384 LP on the achievement of certain

milestones. The liability was cancelled as part of the sale of Being Consultants.

2024

2384 LP held 100% of the shares in Being Consultants prior to the reverse acquisition. As part of the

reverse acquisition, 2384 LP received 200,000,000 ordinary shares in Being AI plus an entitlement to the

contingent consideration detailed in note 24, in exchange for its shareholding in Being Consultants. The

Appointed

Resigned

Katherine Allsopp-Smith

28 March 2024

Evan Christian (as an alternate for K Allsopp-Smith)

28 March 2024

Gregory Cross

31 March 2025

Paul Forno

7 March 2025

Roger Gower

3 July 2020

30 October 2024

Andrew Higgs

30 October 2024

31 January 2025

Joe Jensen

28 March 2024

30 October 2024

Sean Joyce

3 July 2020

23 October 2024

David McDonald

28 March 2024

7 March 2025

Brett O'Riley

30 October 2024

31 January 2025

Stephen Phillips

31 March 2025

Michael Stiassny

31 March 2025

2025

2024

NZ$000

NZ$000

Short term employee benefits - directors

1,255

-

Short term benefits - directors' fees

76

-

Short term benefits - consulting fees

103

-

Share-based payments - directors

261

-

2,131

1,740

Share-based payments - key management employees

146

-

3,972

1,740

Short term employee benefits - key management employees

Being AI Limited
Notes to the Consolidated Financial Statements (continued)

For the year ended 31 March 2025



44

$5.6 million contingent consideration liability at the reporting date is due to 2384 LP on the achievement

of the milestones.

Katherine Allsopp-Smith (executive director) and Evan Christian (executive alternate director)

Katherine Allsopp-Smith and Evan Christian each received a salary of $125,000 for the provision of

executive management services (2024: nil).

2061 Limited Partnership (‘2061 LP’), an entity controlled by Katherine Allsopp-Smith and Evan Christian.

The Group had $187,000 payable to 2061 LP at the reporting date (note 18) for Katherine Allsopp-

Smith’s and Evan Christian’s remuneration. At 31 March 2024 the Group had $6.6 million payable to

2061 LP which related to distributions made during the 2024 year. This payable was settled in April 2024.

At the reporting date the Group had a related party loan of $7.6 million from Wilshire Treasury Limited

(note 19.1) (2024: $5.6 million). Wilshire Treasury Limited is 100% owned by the Christian Family Trust

Limited which is controlled by Katherine Allsopp-Smith and Evan Christian. Evan Christian is the sole

director of Wilshire Treasury Limited. The Group was charged $388,000 in interest by Wilshire Treasury

Limited in 2025 (2024: $298,164).

2061 LP purchased 83,333 ordinary shares in the Company at $0.60 per share under the Company’s

share purchase plan in September 2024.

2024

2061 LP held 100% of the shares in Send Global and 87% of the shares in AGE prior to the reverse

acquisition on 28 March 2024. As part of the reverse acquisition, 2061 LP received 1,520,000,000

ordinary shares in Being AI in exchange for its shareholding in Send Global and AGE. 2061 LP is the

majority shareholder of Being AI.

During the year the Group paid $400,000 to 2061 LP for management services provided during 2024 and

2023.

The Group has a loan of $240,000 payable to the Te Turanga Ukaipo Charitable Trust (note 19.1).

Katherine Allsopp-Smith and Evan Christian are trustees of the Te Turanga Ukaipo Charitable Trust. Te

Turanga Ukaipo Charitable Trust is a substantial shareholder of Being AI. No interest is charged on this

loan.

Sean Joyce (executive director)

During the year Sean Joyce received a salary of $125,000 for the provision of executive management

services (2024: nil).

Sean Joyce is the sole director and shareholder of Excalibur Capital Partners Limited (‘Excalibur’).

Excalibur is a substantial product holder of Being AI.

In December 2023, and prior to the reverse listing on 28 March 2024, the Group provided a loan of $2.0

million to Excalibur to acquire shares in AGE Limited. The $2.0 million less a $1.1 million provision for

impairment is recognised as a term receivable in the Consolidated Statement of Financial Position. The

loan has a five-year term, is interest free and is secured over the shares held by Excalibur. The Company

will seek full recovery of the term receivable but has reduced the carrying value of the term receivable by

way of provision amounting to $1.1 million, therefore reducing the balance to the value of its security.

This provision is reflected in the result for the year to 31 March 2025 (2024 - nil provision).

Excalibur purchased 16,666 ordinary shares in the Company at $0.60 per share under the Company’s

share purchase plan in September 2024.

Being AI Limited
Notes to the Consolidated Financial Statements (continued)

For the year ended 31 March 2025



45

2024

Excalibur held 13% of the shares in AGE at the date of the reverse acquisition on 28 March 2024. As part

of the reverse acquisition, Excalibur received 80,000,000 ordinary shares in Being AI in exchange for its

shareholding in AGE.

At the date of the reverse acquisition, Being AI owed $768,000 to Excalibur. 30,720,000 ordinary shares

in Being AI were issued to Excalibur to settle this debt as part of the reverse acquisition transactions.

At the date of the reverse acquisition, Being AI owed $75,000 to Sean Joyce in directors fees. This

outstanding balance was settled through the issue of 3,000,000 ordinary shares in Being AI.

Roger Gower (independent director)

Roger Gower purchased 5,000 ordinary shares in the Company at $0.60 per share under the Company’s

share purchase plan in September 2024.

2024

At the date of the reverse acquisition, Being AI owed $75,000 to Roger Gower in directors fees. This

outstanding balance was settled through the issue of 3,000,000 ordinary shares in Being AI.

Paul Forno (executive director),

Paul Forno received executive remuneration of $421,000.

During the year Paul Forno was granted 1.51 million share options.

Brett O'Riley (independent director),

During the year Brett O’Reilly received $52,800 in fees for consulting services provided to the Group.

Andrew Higgs (independent director),

During the year Andrew Higgs received $49,800 in fees for consulting services provided to the Group.

33. Contingent liabilities

The Group has provided an unconditional bank guarantee for $780,000 (2024: $780,000), to secure the

payment of charges from New Zealand Post in respect of certain mail services.

There are no contingent liabilities as at 31 March 2025 other than noted above or disclosed elsewhere in

these financial statements (2024: nil).

34. Commitments

There were no commitments for capital expenditure at the reporting date (2024: nil).

Being AI Limited
Notes to the Consolidated Financial Statements (continued)

For the year ended 31 March 2025



46

35. Events subsequent to reporting date

35.1 Sale of AGE

On 2 May 2025 the Company announced it had entered into an agreement to divest its education group.

The transaction eliminated debt of approximately $3.9 million due to Wilshire Treasury, and related

trading liabilities.

The sale of AGE will result in a gain on sale of $1.6 million which will be reflected in the financial

statements for the year ending 31 March 2026.

35.2 Wind down of Project Treehouse

On 16 May 2025 the Board announced that it had decided to close Project Treehouse, BAI’s artificial

intelligence initiative. Related to the closure of the project, the Board announced that BAI Group’s Chief

Executive Officer, David McDonald, its Chief Technology Officer and two staff members who were all

supporting Project Treehouse, had resigned. In connection with the resignations, the Company has

agreed with 2384 Limited Partnership, an entity associated with David McDonald, that 11,900,000 of the

Company’s shares held by that entity will be subject to a share buyback by BAI for nil consideration.

With the full impairment of goodwill as at 31 March 2025 there were no material assets left in the

segment at the time of closure and accordingly no loss or gain resulting from the closure.




Auckland | Level 4, 21 Queen Street, Auckland 1010, New Zealand

Tauranga | 145 Seventeenth Ave, Tauranga 3112, New Zealand

+64 9 366 5000

+64 7 927 1234

info@williambuck.co.nz

williambuck.com


William Buck is an association of firms, each trading under the name of William Buck

across Australia and New Zealand with affiliated offices worldwide.

*William Buck (NZ) Limited and William Buck Audit (NZ) Limited



Independent auditor’s report to the shareholders of Being AI

Limited

Report on the audit of the consolidated financial statements

Qualified opinion

In our opinion, except for the possible effects of the matter described in the Basis for qualified opinion

section of our report, the accompanying consolidated financial statements of Being AI Limited (the

Company) and its subsidiaries (the Group), present fairly, in all material respects:

— the consolidated financial position of the Group as at 31 March 2025, and

— its consolidated financial performance and its cash flows for the year then ended

in accordance with New Zealand equivalents to International Financial Reporting Standards (NZ IFRS)

and International Financial Reporting Standards (IFRS).

What was audited?

We have audited the consolidated financial statements of the Group, which comprise:

— the consolidated statement of financial position as at 31 March 2025,

— the consolidated statement of profit or loss and other comprehensive income for the year then ended,

— the consolidated statement of changes in equity for the year then ended,

— the consolidated statement of cash flows for the year then ended, and

— notes to the consolidated financial statements, including material accounting policy information.

Basis for qualified opinion

The consolidated financial statements for the year ended 31 March 2024 disclosed goodwill of $10.962m

relating to the purchase of Being Consultants Limited (and group) and contingent consideration relating to

this purchase of $5.6m.


The calculation of the deferred consideration and the assessment of goodwill impairment involved a

number of subjective assumptions relating to the future performance of Being Consultants Limited and the

resulting impact of this performance on the share price of the Group.





INDEPENDENT AUDITOR’S REPORT • WILLIAM BUCK 48

We were unable to obtain sufficient appropriate audit evidence to provide assurance over these

assumptions due to their subjective nature and accordingly we were unable to express an opinion as to

whether the recorded carrying value of the goodwill of $10.962m and contingent consideration of $5.6m

recognised by the Group and relating to the purchase of Being Consultants Limited in the year ended 31

March 2024 were materially correct and whether any adjustments to these amounts were necessary.

Our audit opinion for the year ended 31 March 2024 accordingly contained a qualification over these two

balances.

Being Consultants Limited was disposed of during the year ended 31 March 2025. However, since opening

balances enter into the determination of financial performance, we were unable to determine whether

adjustments might have been necessary in respect of the loss for the year reported in the consolidated

statement of profit or loss and other comprehensive income for the year ended 31 March 2025.

We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs (NZ)).

Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit

of the consolidated financial statements section of our report.

We are independent of the Group in accordance with Professional and Ethical Standard 1 International

Code of Ethics for Assurance Practitioners (including International Independence Standards) (New

Zealand) issued by the New Zealand Auditing and Assurance Standards Board, and we have fulfilled our

other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we

have obtained is sufficient and appropriate to provide a basis for our qualified opinion.

Other than in our capacity as auditor we have no relationship with, or interests in, the Company or any of its

subsidiaries.

Material uncertainty related to going concern

We draw attention to Note 4.1 in the consolidated financial statements, which indicates that the Group

incurred a net loss of $11.5m and net cash outflows from operating activities of $3.3m during the year

ended 31 March 2025 and, as of that date, the Group’s current liabilities exceeded its total assets by $4.6m

and the Group was in a negative equity position of $7.0m. As stated in Note 4.1, these events or conditions,

along with other matters as set forth in Note 4.1, indicate that a material uncertainty exists that may cast

significant doubt on the Group’s ability to continue as a going concern. Our opinion is not modified in

respect of this matter.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our

audit of the consolidated financial statements of the current period. These matters were addressed in the

context of our audit of the consolidated financial statements as a whole and in forming our opinion thereon,

and we do not provide a separate opinion on these matters. In addition to the matters described in the

Basis for qualified opinion and Material uncertainty related to going concern sections we have determined

the matters described below to be the key audit matters to be communicated in our report.



INDEPENDENT AUDITOR’S REPORT • WILLIAM BUCK 49


Inventory Area of focus

(refer also to note 14)


The Group holds inventory of finished good with a net

book value of $511,000 as disclosed in Note 14. The

valuation of these assets has a direct impact on the

Comprehensive Income of the Group which is the

reason why we have given specific audit focus and

attention to this area.

How our audit addressed the key

audit matter


Our audit procedures included:

— Understanding the system of processing

inventory transactions

— Attended physical inventory counts on or

around balance date

— Completed detailed substantive testing of the

costing of inventory

— Tested that inventory at the reporting date is

stated at the lower of Cost or Net Realisable

Value by testing a selection of inventory

items to the most recent sales price less

costs to sell

— Review of disclosures in the financial

statements.


Intangible

Assets


Area of focus

(refer also to note 17)


The Group holds intangible assets with a net book

value of $5.583m as disclosed in Note 17. The

valuation of these assets and the significant

judgements involved in the valuation has a direct

impact on the Comprehensive Income of the Group

which is the reason why we have given specific audit

focus and attention to this area.


How our audit addressed the key

audit matter


Our audit procedures included:

— Understanding the breakdown of the

balances and reviewing the original

documentation and calculations that

produced the balances;

— Assessed the accounting treatment of the

balances including the allocation of the

intangible assets to the relevant cash

generating units;

— Performed a review of the impairment

assessment performed by management and

assessed the assumptions and components;

— Performed a review of the significant areas

of judgement involved in assessing the

intangible assets for impairment and

management’s response to these;

— Ensured appropriate disclosure has been

included in the financial statements



INDEPENDENT AUDITOR’S REPORT • WILLIAM BUCK 50

Other information

The directors are responsible for the other information. The other information comprises the Letter from the

Chair and CEO, Shareholder and Statutory information, Corporate Governance Statement, and Directory

included in the Group’s annual report for the year ended 31 March 2025, but does not include the

consolidated financial statements and our auditor’s report thereon.

Our opinion on the consolidated financial statements does not cover the other information and we do not

express any form of audit opinion or assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other

information and, in doing so, consider whether the other information is materially inconsistent with the

consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be

materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other

information, we are required to report that fact.

We have nothing to report in this regard.

Directors’ responsibilities for the consolidated financial statements

The directors are responsible on behalf of the Group for the preparation and fair presentation of the

consolidated financial statements in accordance with NZ IFRS, and for such internal control as the directors

determine is necessary to enable the preparation of consolidated financial statements that are free from

material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, the directors are responsible on behalf of the Group for

assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to

going concern and using the going concern basis of accounting unless the directors either intend to

liquidate the Group or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the consolidated financial

statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as

a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report

that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an

audit conducted in accordance with ISAs (NZ) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,

they could reasonably be expected to influence the economic decisions of users taken on the basis of these

consolidated financial statements.

A further description of our responsibilities for the audit of the consolidated financial statements is located at

the External Reporting Board’s website:


https://www.xrb.govt.nz/standards/assurance-standards/auditors-responsibilities/audit-report-1


This description forms part of our auditor’s report.


The engagement partner on the audit resulting in this independent auditor’s report is Michael Wood.



INDEPENDENT AUDITOR’S REPORT • WILLIAM BUCK 51


Restriction on distribution and use

This independent auditor’s report is made solely to the shareholders, as a body. Our audit work has been

undertaken so that we might state to the shareholders those matters which we are required to state to them

in the independent auditor’s report and for no other purpose. To the fullest extent permitted by law, we do

not accept or assume responsibility to anyone other than the shareholders, as a body, for our audit work,

this independent auditor’s report, or for the opinions we have formed.



William Buck Audit (NZ) Limited

Auckland, 30 June 2025



Being AI Limited
Shareholder and Statutory Information

For the year ended 31 March 2025



52

Stock exchange listing

The Group’s shares are quoted on the NZX Main Board. As at 10 June 2025, the Company had

187,371,901 ordinary shares on issue (31 March 2025: 187,371,901 ordinary shares).

Distribution of security holders

Details of the distribution of ordinary shares amongst shareholders at 10 June 2025 are set out below.


20 largest shareholdings

The 20 largest shareholdings at 10 June 2025 are provided in the table below.


Size of Holding

Number

%

Number

%

1-999

521



72.36%

68,471



0.04%

1,000-4,999

119



16.53%

239,899



0.13%

5,000-9,999

27



3.75%

171,268



0.09%

10,000-99,999

39



5.42%

1,094,996



0.58%

100,000 - 499,999

8



1.11%

1,769,238



0.94%

500,000 or more

6



0.83%

184,028,029



98.22%

720



100.00%

187,371,901



100.00%

Number of Security Holders

Number of Securities

NameNumber of

shares held

% of

shares held

2061 Limited Partnership127,000,000 67.78%

Te Turanga Ukaipo Charitable Trust25,000,000 13.34%

2384 Limited Partnership20,000,000 10.67%

Excalibur Capital Partners Limited9,616,666 5.13%

Apz Limited1,363,466 0.73%

New Zealand Depository Nominee Limited1,047,897 0.56%

Jackson & Associates Limited400,000 0.21%

Johannes Lodewikus Cilliers380,000 0.20%

Arno Investments Limited305,000 0.16%

Russell Graham Roberts180,682 0.10%

Custodial Services Limited167,528 0.09%

Trinity Portfolio Limited130,000 0.07%

Anthony Theodore Bus105,432 0.06%

Guiping Chen100,596 0.05%

Wendi Kuang98,269 0.05%

Grant James Paterson & Joanne Therese Paterson90,000 0.05%

Evan Christian83,333 0.04%

Li Da Yang66,666 0.04%

Beconwood Superannuation Pty Limited60,000 0.03%

Chao Wang53,334 0.03%

Being AI Limited
Shareholder and Statutory Information (continued)

For the year ended 31 March 2025



53

Substantial product holders

The following information is given pursuant to Section 293 of the Financial Markets Conduct Act 2013.

The following are recorded by the Company at 31 March 2025 as Substantial Product Holders in the

Company, and have declared the following relevant interest in quoted financial products under the

Financial Markets Conduct Act 2013:

Substantial product holder Relevant interest

2061 LP and E K Trust Limited 127,000,000

Te Turanga Ukaipo Charitable Trust 25,000,000

2384 LP 20,000,000

Excalibur Capital Partners Limited 9,616,666

The total number of quoted financial products issued by the Company at 31 March 2025 were the

187,371,901 ordinary shares.

Directors

The names of the Company’s directors holding office during the year are:

Name Office held Date

Katherine Allsopp-Smith Executive director Appointed March 2024

Evan Christian Executive director (alternate to

K Allsopp-Smith)

Appointed March 2024

Gregory Cross Independent director Appointed March 2025

Paul Forno Executive director Appointed March 2025

Roger Gower Independent director Appointed July 2020

Resigned October 2024

Andrew Higgs Independent director Appointed October 2024

Resigned January 2025

Joe Jensen Independent director Appointed March 2024

Resigned October 2024

Sean Joyce Executive director Appointed July 2020

Resigned October 2024

David McDonald Executive director Appointed March 2024

Resigned March 2025

Brett O'Riley Independent director Appointed October 2024

Resigned January 2025

Stephen Phillips Independent director Appointed March 2025

Michael Stiassny Independent director Appointed March 2025

Being AI Limited
Shareholder and Statutory Information (continued)

For the year ended 31 March 2025



54

The names of directors of the Group’s subsidiaries during the year were:

Name of subsidiary Director

AGE Limited Katherine Allsopp-Smith, Evan Christian

Being Bidco Limited Paul Forno

Being Consultants Limited David McDonald

Being Education GP Limited Katherine Allsopp-Smith, David McDonald

Being Educated Limited Katherine Allsopp-Smith, David McDonald

Being Holdco Limited Paul Forno, Sean Joyce

Being Labs Limited David McDonald

Being US Limited Paul Forno

Being Ventures Limited David McDonald

Filecorp NZ Limited Mike Dunshea, Paul Forno

Fingerprint IP Limited Katherine Allsopp-Smith, David McDonald

G3 Property Holdings Limited Mike Dunshea, Paul Forno

Manawaroa GP Limited Katherine Allsopp-Smith

New Zealand Mail Limited Mike Dunshea, Paul Forno

Pete's Post Limited Paul Forno

Send New Zealand Limited Paul Forno

Send Global Limited Evan Christian, Paul Forno

Treehouse Technologies Limited Mike Dunshea, David McDonald

Interests register

The following entries were made in the Company’s interest register during the year ended 31 March

2025:

The directors provided the following disclosure of entities in which, due to the nature of their

relationship, may be related parties to the Group, and transactions in which they have an interest.


Katherine Allsopp-Smith Nature of Interest Financial Interest

Being AI Limited Director and shareholder Executive

remuneration &

ownership

2061 LP Director and shareholder Ownership

Wilshire Treasury Limited Shareholder Ownership

Wilshire Holdings Limited Shareholder Ownership

The Group had $187,000 payable to 2061 LP at 31 March 2025.

Being AI Limited
Shareholder and Statutory Information (continued)

For the year ended 31 March 2025



55

2061 LP purchased 83,333 ordinary shares in the Company at $0.60 per share under the Company’s

share purchase plan in September 2024.

At 31 March 2025 the Group had a related party loan of $7.6 million from Wilshire Treasury Limited.

Katherine Allsopp-Smith receives a salary of $125,000 per annum for the provision of executive

management services.


Evan Christian Nature of Interest Financial Interest

Being AI Limited Director and shareholder Executive

remuneration &

ownership

2061 LP Director and shareholder Ownership

Wilshire Treasury Limited Director and shareholder Ownership

Wilshire Holdings Limited Director and shareholder Ownership

Evan Christian is an alternate for Katherine Allsopp-Smith.

The Group had $187,000 payable to 2061 LP at 31 March 2025.

2061 LP purchased 83,333 ordinary shares in the Company at $0.60 per share under the Company’s

share purchase plan in September 2024.

At 31 March 2025 the Group had a related party loan of $7.6 million from Wilshire Treasury Limited.

Evan Christian receives a salary of $125,000 per annum for the provision of executive management

services.


Greg Cross Nature of Interest Financial Interest

Being AI Limited Director Directors’ fees

Cross Ventures Limited Director and shareholder Ownership

Eighty20.AI Inc, Eighty20.AI Limited Director, shareholder & CEO Salary & ownership


Paul Forno Nature of Interest Financial Interest

Being AI Limited Director Employee

remuneration &

share options

Send Global Limited Director and shareholder None

New Zealand Mail Limited Director, shareholder & CEO None

Filecorp Limited Director None

G3 Property Holdings Director None

Being AI Limited
Shareholder and Statutory Information (continued)

For the year ended 31 March 2025



56

Roger Gower Nature of Interest Financial Interest

Roger Gower & Associates Limited Director & shareholder Ownership

WasteCo Group Limited Director & shareholder Directors’ fees

PrimePort Timaru Limited Director Directors’ fees

IntoWork Australia Limited Director Directors’ fees

IntoWork New Zealand Limited Director Directors’ fees

Me Today Limited Director & shareholder Directors’ fees

Being AI Limited Director & shareholder Directors’ fees

New Zealand Food Innovation Auckland

Limited

Director Directors’ fees


David McDonald Nature of Interest Financial Interest

Being AI Limited Director, CEO & shareholder Employee

remuneration &

ownership

2384 LP Director & shareholder Ownership

Futureverse Holdings Limited Shareholder Share ownership

DCG McDonald Limited Director & shareholder Ownership

BIMU Limited Director & shareholder Ownership

TrackBack Limited Director & shareholder Share ownership

David McDonald received remuneration as CEO of the BAI group of $415,000 per annum.

On 29 November 2024 the Company entered into a share sale and purchase agreement to sell Being

Consultants Limited back to 2384 LP, the original vendor from whom the Company purchased Being

Consultants Limited.


Sean Joyce Nature of Interest Financial Interest

Being AI Limited Director & shareholder Executive salary

Excalibur Capital Partners Limited Director & shareholder Ownership

Connemara Capital Trust Limited Director & shareholder Ownership

Excalibur owes Send Global Limited $2,000,000 pursuant to a loan agreement.

Connemara Capital Trust Limited, a consulting company owned and controlled by Sean Joyce, received

an annual remuneration of $250,000 per annum for the provision of services by Sean Joyce to the

Company as Director of Acquisitions and Capital.

Excalibur purchased 16,666 ordinary shares in the Company at $0.60 per share under the Company’s

share purchase plan in September 2024.

Being AI Limited
Shareholder and Statutory Information (continued)

For the year ended 31 March 2025



57

Joe Jensen Nature of Interest Financial Interest

Being AI Limited Director & shareholder Directors' fees


Michael Stiassny Nature of Interest Financial Interest

Being AI Limited Director Directors’ fees

MS10 Limited T/A Stiassny + Co Director & shareholder Ownership


Steve Phillips Nature of Interest Financial Interest

Being AI Limited Director Directors’ fees


Other directors of subsidiary companies

The following entries were made in the interest registers of subsidiary companies during the year ended

31 March 2025:

Mike Dunshea Nature of Interest Financial Interest

New Zealand Mail Limited Director None

Filecorp Limited Director None

G3 Property Holdings Limited Director None

Directors’ relevant interest in equity securities

As at 31 March 2025 the directors of the Group held the following relevant interests in quoted financial

products and financial products that may convert to quoted financial products.



Ordinary

Name

Shares

Vested

Not vested

Katherine Allsopp-Smith

152,000,000

-

-

Evan Christian

152,000,000

-

-

Gregory Cross

-

-

-

Paul Forno

-

-

1,009,000

Gregory Cross

-

-

-

Stephen Phillips

-

-

-

Michael Stiassny

-

-

-

Share options granted

Being AI Limited
Shareholder and Statutory Information (continued)

For the year ended 31 March 2025



58

Directors’ remuneration

During the year the following remuneration and other benefits were paid or payable to directors of the

Group. The amounts below reflect the remuneration related expenses included in the Group’s

consolidated financial statements.


BAI Group permanent employees do not receive additional remuneration for acting as Directors of

subsidiary companies.

Directors' indemnification

The Group indemnifies all current directors of the Group against all liabilities which arise out of the

performance of their normal duties as directors, unless the liability relates to conduct involving lack of

good faith.

Auditor

William Buck is the auditor for the Group. Audit fees due and payable to the auditor for the year ended

31 March 2025 were $90,000.

Chief Executive Officer’s (‘CEO’s’) remuneration

David McDonald was CEO of the Group during the year to 31 March 2025. He received an annual salary

of $438,000 with no other remuneration or benefits in his role as CEO.


Directors'

fees

Employee

remuneration

Consulting

fees

Share based

payments

NZ$000 NZ$000 NZ$000 NZ$000

Directors of Being AI Limited

Katherine Allsopp-Smith-125--

Evan Christian-125--

Gregory Cross----

Paul Forno-421-261

Roger Gower38---

Andrew Higgs--50-

Joe Jensen38---

Sean Joyce-146--

David McDonald-438--

Brett O'Riley--53-

Stephen Phillips----

Michael Stiassny----

Being AI Limited
Shareholder and Statutory Information (continued)

For the year ended 31 March 2025



59

Employee remuneration

The number of employees, not being directors of the Company disclosed in the Directors’ renumeration

section above, within the Group receiving annual remuneration and benefits above $100,000 are:


Donations

No donations were made by the Group during the year.

Exercise of NZ RegCo’s powers

NZ RegCo suspended the Company’s shares from trading in the period from 3 February 2025 until

14 April 2025.

The suspension was initially due to the resignations of BAI’s two independent directors which resulted in

the Company did not meeting the NZX Listing Rules governance requirements relating to board and audit

committee composition, including as to the minimum number of directors and independent directors.

On 31 March 2025 BAI announced the appointment of new independent, non-executive directors.

Following those appointments, BAI complied with the NZX Listing Rules governance requirements

relating to board and audit committee composition.

On 31 March 2025 NZ RegCo advised the market that the suspension would remain in place, pending the

release of a cleansing statement by BAI in the form of a trading update. BAI provided this market update

on Friday 11 April 2025 and trading in the ordinary shares in the Company resumed on Monday 14 April

2025.

NZX Waivers

BAI has not relied on any waivers issued by the NZX in the 12 months ended 31 March 2025.


Remuneration

Number

$100,000 - $109,999

5



$110,000 - $119,999

2



$130,000 - $139,999

1



$140,000 - $149,999

3



$150,000 - $159,999

2



$160,000 - $169,999

1



$200,000 - $209,999

1



$210,000 - $219,999

1



$220,000 - $229,999

1



$230,000 - $239,999

1



$280,000 - $289,999

1



$360,000 - $369,999

1



$370,000 - $379,999

1



$460,000 - $469,999

1


Being AI Limited
Board of Directors




60

Michael Stiassny (Chair)

Michael is a pre-eminent business advisory and restructuring specialist, holding both commerce and law

degrees from the University of Auckland. A Chartered Fellow and past President of the New Zealand

Institute of Directors, Michael has built a high-profile governance career and is currently Chairman of

Tower Limited, 2 Cheap Cars Group Limited, and Director of Tegel Group Holdings Limited and New

Talisman Gold Mines Limited.

Michael Stiassny is the Chair of BAI and is also a member of BAI’s Risk & Audit and Remuneration

committees.

Katherine Allsopp-Smith

Katherine is a Design Graduate from Auckland University of Technology. Katherine along with Evan are

both currently involved with 2061.ai, AGE Foundation Charitable Trust, AGE School, Send Global, Wilshire

Group and CM LLC.

Katherine’s passions lie at the intersection of business, environmental sustainability and emotional

wellbeing.

Evan Christian (as alternate to Katherine Allsopp-Smith)

Evan Christian is a New Zealand born technology entrepreneur, recently known for his association with

AGE School which he co-foundered with his partner Katherine Allsopp-Smith in 2017. Evan is a Computer

Science Graduate from Auckland University. Evan made his initial fortune through Transport

Investments, one of New Zealand’s largest transport and logistics group, which was sold in 1996. He was

a former director and shareholder of Tech Trans LLP(Fintech), Albano Healthcare (NZX Aged Care), Zintel

Communications (NZX telecommunications), Advantage Group (NZX Fintech, Web 1.0 and 2.0) and

United Electricity (Retailer) amongst others.

Greg Cross

Greg Cross is an experienced global entrepreneur and technology executive with a focus on

commercialising deep technology research. He founded native AI company, Eighty20.AI in 2024. In 2016

he co-founded Soul Machines, quickly establishing it as a leading artificial intelligence research company

backed by international investors. Earlier in his career, he was a founder of PowerbyProxi, a company

that was sold to Apple.

He has also been Chair of SLI Systems, Vice-Chair of Metservice and Chairman of NZTE’s Beachhead

Board. Greg was recognized by the World Economic Forum as a Technology Pioneer for his work in the

field of Artificial Intelligence in 2018 and in 2019 he was inducted into New Zealand's Technology Hall of

Fame as the recipient of the Flying Kiwi Award.

Greg Cross is Chair of the Remuneration Committee and is also a member of BAI’s Risk & Audit

Committee.

Being AI Limited
Board of Directors (continued)




61

Paul Forno

Paul is Chief Executive Officer of Send Global, Acting Chief Executive Officer of Being AI, and is an

experienced executive, having held senior executive positions in various other large New Zealand

companies over the past 25 years. Paul has worked in the government, not for profit, media and

education sectors. More recently, Paul has worked in the services sector, running his own consultancy

business. In addition to his senior executive positions, he has also held a number of directorships in

companies across New Zealand.

Paul has been responsible for driving several significant change management programmes and is known

for his down-to-earth approach, and as leader that gets the best out of his team members.

Outside of his professional career, Paul enjoys spending time with his wider family, the outdoors,

renovating properties and contributing to various not for profit organisations.

Steve Phillips

Steve Phillips has a forty-year career in CEO, Managing Director and governance positions including as a

chair, director and audit committee chair of numerous public and private entities. His expertise in

strategic planning and facilitation led him to work with Cin7, Brierley Investments, Blue Star Group, G3

Group Limited, Boise Corporation, U.S. Office Products, Ngai Takatu Iwi, Te Runanga O Whaingaroa and

many minor entities. Steve retired from his last governance position in 2020.

Steve Phillips is Chair of the Risk & Audit Committee. He is also a member of BAI’s Remuneration

Committee.

Being AI Limited
Corporate Governance Statement

For the year ended 31 March 2025


62

The Board is committed to achieving best-practice corporate governance and the highest ethical

behaviour across its directors. The governance principles adopted by the Board are designed to achieve

these goals.


This statement is a summary of the Corporate Governance arrangements approved and observed by the

Board as at 31 March 2025.

Code of ethics

The Board has documented a code of ethics. The code of ethics details the standards of ethical behaviour

on which the directors and employees of the Company and its subsidiaries (‘the Group’) are required to

conduct their professional lives.

Role of the Board

The objective of the Board is to enhance shareholder value by directing the Company in accordance with

sound governance principles. The Board assumes the following primary responsibilities.

• Formulation and approval of the strategic direction, objectives and goals of the Company;

• Monitoring the financial performance of the Company, including approval of the Company’s

financial statements;

• Ensuring adequate internal control system and procedures exist and that compliance with these

systems and procedures is maintained

• Review of performance and remuneration of directors and executive officers; and

• Establishment and maintenance of appropriate ethical standards for the Company to operate by.

A formal Governance Code has been adopted by the Board and further outlines directors’

responsibilities.

The Board internally evaluates its performance and continues to assess the size, diversity and skills of the

Board.

Board composition

In accordance with the Company’s constitution and the NZX Listing Rules, the Board will comprise not

less than three directors. The Board will be comprised of a mix of persons with complimentary skills

appropriate to the Company’s objectives and strategies. The Board must include not less than two

persons who are deemed to be independent.

Being AI’s Board currently comprises the following directors

Michael Stiassny Independent Director Chairperson

Greg Cross Independent Director Chair of the Remuneration Committee

Steve Phillips Independent Director Chair of the Risk & Audit Committee

Katherine Allsopp-Smith Executive Director

Evan Christian Executive Director As an alternate to K Allsopp-Smith

Paul Forno Executive Director Chief Executive Officer

Being AI Limited
Corporate Governance Statement (continued)

For the year ended 31 March 2025



63

As set our above, Michael Stiassny, Greg Gross and Steve Phillips are considered by the Board to be

independent directors, as defined under the NZX Listing Rules, as at 31 March 2025. This determination

has been made on the basis that neither Mr Stiassny, Mr Cross nor Mr Phillips are employees of the

Group, nor do they have any ‘Disqualifying Relationship’ as that term is defined in the Listing Rules.

The Board consider that it has the right balance for the size and structure of the Company. The Board will

continue to reassess this going forward to ensure that the balance of Board members remains

appropriate for the Company’s needs.

Information about each director is included in the Annual Report.

Board meetings

Board meetings are held monthly and are attended by key management personnel, as required.

Additional meeting will be held as and when required. Board meetings involve discussion and review of

health and safety, finances, market information, strategy and relevant operational matters.

The following table show Director attendance at Board meetings for the 2025 financial year.

Board member Board meetings attended

Michael Stiassny -

1


Greg Cross -

1


Steve Phillips -

1


Katherine Allsopp-Smith 10

Evan Christian 9

Paul Forno 1

1


David McDonald 9

2


Andy Higgs 2

3


Brett O’Riley 2

3


Roger Gower 6

4


Joe Jensen 6

4


Sean Joyce 6

4



Notes:

1

appointed March 2025

2

resigned March 2025

3

resigned January 2025

4

resigned October 2024

Criteria for Board membership

When a vacancy arises, the Board will identify candidates with a mix of diversity, capabilities and

perspectives considered necessary for the board to carry out its responsibilities effectively. A director

appointed by the Board must stand for election at the next annual meeting. At each Annual Meeting one

third of directors must retire by rotation. A director may not hold office for longer than three years or

past the third annual meeting following that director’s appointment. Retiring directors are eligible for

re-election.

Being AI Limited
Corporate Governance Statement (continued)

For the year ended 31 March 2025



64

Board committees

The board has established an Audit Finance and Risk Committee and a Remuneration, Nomination and

Health and Safety committee.

The Audit, Finance, and Risk Committee operates under a charter approved by the board and is

accountable for:

• the business relationship with and the independence of external auditors;

• the reliability and appropriateness of the disclosure of the financial statements and external

financial communication;

• and the maintenance of an effective business risk management framework, including compliance

and internal controls.


The current members of the Audit, Finance, and Risk Committee are Steve Phillips, Greg Cross and

Michael Stiassny.

The Remuneration, Nominations and Health and Safety Committee operates under a charter approved

by the board and is accountable to the board for:

• the appointment remuneration and evaluation of the CEO and succession planning in relation to

them;

• the remuneration of the leadership team;

• reviewing risks and compliance with statutory and regulatory requirements relative to human

resources;

• reviewing health and safety policies to ensure the Company is providing a safe working environment

for all employees and contractors; and

• recommending to the board candidates to be appointed as a director.

The current directors of the Remuneration, Nominations and Health and Safety Committee are Greg

Cross, Steve Phillips and Michael Stiassny.

Health and safety

The Board ensures that the Company effectively manages health and safety. Providing leadership and

securing and allocating resources, as well as ensuring the Company has appropriate people systems and

equipment to manage the risks related to its work activities, are important aspect of the Board's

responsibility to health and safety management. The Group has a health and safety incident reporting

system by which it reports incidents to the board for its information review and assurance on a monthly

basis.

Being AI Limited
Corporate Governance Statement (continued)

For the year ended 31 March 2025



65

Diversity

The board recognise a wide-ranging benefits that diversity brings to an organisation. The Company

endeavours to incorporate diversity to ensure a balance of skills and perspectives are available to benefit

our shareholders.

As at 31 March 2025, the gender balance of the Company's directors and officers were as follows.



2025 2024

Female Male Female Male

Directors 1 4 1 4

Officers (excluding Directors) - 1 3 4

1 5 4 8


Being AI is committed to fostering an equitable, diverse and inclusive workplace where all employees

feel valued and empowered to contribute their unique perspectives. This commitment is founded on the

principles of the companies in the Group. It helps drive innovation and creativity and aligns with the

Group’s values as a responsible participant in the New Zealand corporate landscape.

Trading in Shares

The Company has a detailed financial products trading policy applying to all directors and employees.

The procedures, outlined in this policy, must be followed by all directors and employees to obtain

consent to trade the Company's shares. Under the policy, trading restrictions apply during the following

specific blackout periods

• two weeks before 30 September until 48 hours after half-year results are released to NZX;

• two weeks before 30 March until 48 hours after the full year results are released to NZX; and

• and 30 days prior to release of an offer document (such as a product disclosure statement or

prospectus) for a general offer of the same class of restricted securities.

Outside the blackout periods, specified above, dealing is subject to the notification consent requirements

outlined in the policy.

Continuous disclosure

The Company has in place procedures designed to ensure compliance with the NZX Listing Rules such

that all investors have equal and timely access to material information concerning the Company,

including its financial situation, performance, ownership, and governance.

Announcements are factual and presented to in a clear and balanced way. Significant market

announcements, including the announcements of the half year and full-year results and the financial

statement for those periods, require review by the Board prior to release.

The group's market disclosure policy has been put in place to ensure that the Company complies with its

continuous disclosure obligations at all times.

Being AI Limited
Corporate Governance Statement (continued)

For the year ended 31 March 2025



66

Corporate governance best practice code

During the year ended 31 March 2025 the Company has followed the NZX Corporate Governance best

practise code in all material aspects with the following exceptions:


Reference Recommendation Alternative Governance Practice and

Reason for the Practice

Recommendation 4.2 An issuer should make its code of ethics,

board and committee charters and the

policies recommended in the NZX code,

together with any other key government

documents available on its website.

These documents were recently removed

from the Being AI website.

The reconstituted Board will ensure these

are reviewed reloaded to the Being AI

website over the next six months.

Recommendation 4.4

An issuer should provide non-financial

disclosure at least annually including

considering environmental, economic

and social sustainability factors and

practices. It should explain how

operational or non-financial targets are

measured. Non-financial reporting

should be informative, include forward-

looking assessments and align with key

strategies and metrics monitored by the

Board.

Being AI has provided limited reporting on

environmental economic and social

sustainability factors to date while it focuses

on establishing its strategic priorities.

The wellbeing of its customers, employees

and other stakeholders is important to Being

AI, as is its social responsibility and

environmental impact. The Company will

implement and report on appropriate non-

financial measures in future periods.

Recommendation 6.1 An issuer should have a risk

management framework for its business

and the issuer’s board should receive

and review regular reports. An issuer

should report the material risks facing

the business and how these are being

managed.

Being AI does not currently have a group

wide risk management policy or risk

management framework. However, key

risks for the Group were a regular topic of

discussion at Board meetings.

The newly appointed audit, finance and risk

committee will work with management to

ensure an appropriate compliance and

monitoring process is implemented.

Recommendation 7.2 The external auditor should attend the

issuer’s Annual Meeting to answer

questions from shareholders in relation

to the audit.

William Buck, the Group’s Auditor, did not

attend the 2024 Annual meeting. However,

no matters arose at the meeting that

needed to be addressed by the Auditor.

The Group will ensure it makes adequate

arrangements to have the Auditor attend

the 2025 Annual Meeting.

Being AI Limited
Directory




67

Registered Office

14 Honan Place

Avondale

Auckland


Website

www.beingai.group


Share register

Computershare Investor Services Limited

159 Hurstmere Road

Takapuna

+ 64 9 488 8700



Auditor

William Buck

Level 4, 21 Queen Street

Auckland

Solicitors

Chapman Tripp

15 Customs Street West

Auckland



Bankers

ANZ Bank

23 Albert Street

Auckland

New Zealand

Board of Directors

Michael Stiassny

Independent Director and Chair



Steve Phillips

Independent Director


Paul Forno

Executive Director and Acting CEO


Greg Cross

Independent Director


Katherine Allsopp-Smith

Executive Director


Evan Christian

Executive Director

(Alternate to K Allsopp Smith)

Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.

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