Red Bubble Annual Report 2022

for the year ended 30 June 2022 Notes Contributed equity $’000 Treasury reserve(1) $’000 Share based payments reserve $’000 Foreign exchange translation reserve $’000 Accumulated losses $’000 Total $’000 Balance as at 1 July 2021 162,552 (7,351) 11,414 (3,408) (47,339) 115,868 Profit/(loss) for the year – – – – (24,588) (24,588) Other comprehensive income/(loss) – – – 3,454 – 3,454 Total comprehensive loss for the year – – – 3,454 (24,588) (21,134) Exercise of share options 17(b) 1,459 – – – 1,459 Transfer to issued capital(2) 17(b) 4,954 – (4,954) – – – Share based payments expense 4 – – 6,887 – – 6,887 Shares issued to Employee Share Trust 17(b) 10,120 (10,120) – – – – Shares issued/allocated to participants(3) 17(b) (15,283) 15,283 – – – – Payment of withholding taxes(4) 17(b) (1,276) – – – – (1,276) Income tax benefit recognised directly in equity for Employee Share Trust deductions(5) 17(b) – 2,153 – – – 2,153 Transfer to accumulated losses(6) 17(b) – (3,970) – – 3,970 – Balance as at 30 June 2022 162,526 (4,005) 13,347 46 (67,957) 103,957 (1) T he Group operates an Employee Share Trust (the Trust) for the purpose of issuance of shares to participants on exercise of options/restricted stock units. The balance in the treasury reserve represents the book value of shares held by the Trust for future issue to participants on exercise of options/restricted stock units. The treasury reserve also includes shares used as security for the limited recourse loan provided to the CEO. Details of this transaction are disclosed in Note 22(b). (2) Transfer to issued capital on issuance of shares for exercised options/restricted stock units. (3) Shares issued/allocated to participants from the Employee Share Trust. (4) Payment of withholding taxes to US tax authorities on issuance of restricted stock units funded by shares withheld. (5) A tax benefit of $2.1m was recognised directly in equity for income tax benefits relating to contributions to the Employee Share Trust in excess of the associated cumulative remuneration expense. (6) T he balance transferred to accumulated losses represents the income tax benefit recorded in the reserve for equity rights that were converted into shares in the current period. The above Consolidated Statement of Changes in Equity should be read in conjunction with accompanying notes. Consolidated Statement of Changes in Equity For the Year Ended 30 June 2022 Consolidated Statement of Changes in Equity continued For the Year Ended 30 June 2022 for the year ended 30 June 2021 Notes Contributed equity $’000 Treasury reserve(1) $’000 Share based payments reserve $’000 Foreign exchange translation reserve $ ’000 Accumulated losses $’000 Total $ ’000 Balance as at 1 July 2020 145,438 (5,303) 13,699 (335) (86,021) 67,478 Profit/(loss) for the year – – – – 31,247 31,247 Other comprehensive income/(loss) (3,073) – (3,073) Total comprehensive loss for the year – – – (3,073) 31,247 28,174 Exercise of share options 17(b) 8,366 – – – – 8,366 Transfer to issued capital(2) 17(b) 8,990 – (8,990) – – – Share based payments expense 4 – – 6,705 – – 6,705 Shares issued to Employee Share Trust 17(b) 44,326 (44,326) – – – – Shares issued/allocated to participants(3) 17(b) (41,413) 41,413 – – – – Payment of withholding taxes(4) 17(b) (3,155) – – – – (3,155) Limited recourse loan made to related parties(5) 17(b) – (1,600) – – – (1,600) Income tax benefit recognised directly in equity for Employee Share Trust deductions(6) 17(b) – 9,900 – – – 9,900 Transfer to accumulated losses(7) 17(b) – (7,435) – – 7,435 – Balance as at 30 June 2021 162,552 (7,351) 11,414 (3,408) (47,339) 115,868 (1) T he Group operates an Employee Share Trust (the Trust) for the purpose of issuance of shares to participants on exercise of options/restricted stock units. The balance in the treasury reserve represents the book value of shares held by the Trust for future issue to participants on exercise of options/restricted stock units. In FY2021 the treasury reserve also includes shares used as security for the limited recourse loan provided to the CEO. (2) Transfer to issued capital on issuance of shares for exercised options/restricted stock units. (3) Shares issued/allocated to participants from the Employee Share Trust. (4) Payment of withholding taxes to US tax authorities on issuance of restricted stock units funded by shares withheld. (5) A limited recourse loan was provided to the Redbubble Group CEO to purchase Redbubble shares on-market. This is treated as an acquisition of treasury shares. Details of this transaction are disclosed in Note 22(b). (6) A tax benefit of $9.9m was recognised directly in equity for income tax benefits relating to contributions to the Employee Share Trust in excess of the associated cumulative remuneration expense. (7) T he balance transferred to accumulated losses represents the income tax benefit recorded in the reserve for equity rights that were converted into shares in the current period. The above Consolidated Statement of Changes in Equity should be read in conjunction with accompanying notes. 61 Redbubble – Annual Report 2022 60 Redbubble – Annual Report 2022

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