Rewardle’s Half-Year Loss Jumps 497% to $2.69 Million Amid Strategic Investments

Financial Performance and Losses

Rewardle Holdings Limited has reported a significant widening of its half-year loss, with the net loss after tax soaring by 497% to $2.69 million for the six months ended 31 December 2024. This comes despite a relatively stable revenue base, which saw a modest 4% decline to $5.43 million. The company’s basic and diluted loss per share increased to 0.51 cents, up from 0.09 cents in the prior corresponding period.

The increase in losses was driven by higher operating expenses, including a 55% rise in share of loss from associates, primarily reflecting the performance of its MedTech partner CloudHolter. Employee costs and consultant fees also contributed to the expense growth, underscoring Rewardle’s investment in expanding its operational capabilities.

Strategic Partnership with CloudHolter

Rewardle’s strategic focus remains on leveraging its proprietary Business to Business to Consumer (B2B2C) software platform through partnerships and investments. A cornerstone of this strategy is its 49.9% equity stake in CloudHolter Pty Ltd, a rapidly growing MedTech company specializing in innovative cardiac diagnostic services and AI-powered ECG analysis software.

CloudHolter’s growth trajectory and recent capital raises have led Rewardle to convert service fees into equity, maintaining its substantial shareholding. The partnership offers Rewardle exposure to the burgeoning digital health sector, with CloudHolter’s AI solutions promising global applicability and the potential to significantly enhance patient outcomes.

Diversification Through Fintech and Grocery Delivery

Beyond MedTech, Rewardle is actively expanding its fintech and consumer services footprint. The company acquired distribution rights for the UpStreet Investors Fund, enabling micro-investing capabilities within its platform, and took control of Sub11 Pty Ltd, a fintech publisher and investor engagement consultancy. These moves aim to create a modern, mobile-centric engagement solution for listed companies.

In the consumer sector, Rewardle consolidated its grocery delivery operations by acquiring a controlling interest in Pepper Leaf, complementing its existing YourGrocer business. This vertical integration aligns with Rewardle’s vision to build a community-powered alternative to major supermarket chains, leveraging its membership, points, rewards, and payments platform.

Financial Position and Going Concern Concerns

Rewardle’s balance sheet reflects net liabilities of nearly $4 million and net current liabilities exceeding $7.4 million, raising concerns about its financial sustainability. The company’s shares remain suspended from trading pending the lodgement of outstanding financial reports, which the company is working to complete with its auditor.

The auditor’s review report highlights a material uncertainty regarding Rewardle’s ability to continue as a going concern, citing the operating loss and net current liabilities. The directors remain confident, however, citing positive cash flow forecasts, ongoing revenue from strategic partnerships, and potential capital raising opportunities.

Looking Ahead

Rewardle is navigating a challenging financial period but is simultaneously investing in growth initiatives across technology, health, fintech, and consumer sectors. The success of its partnership with CloudHolter and the integration of recent acquisitions will be critical to reversing losses and restoring investor confidence. The company’s ability to complete its financial reporting and resume trading will also be closely watched by the market.