Page:Tickle v Giggle for Girls Pty Ltd (No 2).pdf/65

(d) the Giggle App, at least in its beta stage, showed advertisements through Google Admob, which I infer to be a mobile telephone advertisement service. Ms Grover's evidence was that this was only done until Giggle could place its own content in those spaces as otherwise there would be blank space for advertisements on the Giggle App, which would "distort the aesthetic of the App";

(e) due to the Giggle App's low rankings on Google Play and the Apple App Store, those advertisements produced little to no income;

(f) in Giggle's balance sheet for the financial year ending 30 June 2021, which also includes details from the financial year ending 30 June 2020, the total assets as at 30 June 2020 were $223,721 and at 30 June 2021 $380,450; and the net liabilities for each year were much higher, being $505,273 for the 2020 financial year and $676,337 for the 2021 financial year, with almost $300,000 negative equity in both financial years, which, in the context of the other features listed, is some indication of trading activity or activity in support of trading;

(g) the development costs for the Giggle App recorded in the balance sheet referenced above were $187,499 as at 30 June 2020 and $300,886 as at 30 June 2021, those amounts being recorded as a component of the company's fixed assets, being cumulative amounts, meaning that the development costs of the Giggle App over those two financial years was just shy of half a million dollars;

(h) profit and loss statements prepared by accountants for Giggle show that the company had the following trading profits in the following years:

(i) financial year ending 30 June 2020: $14 from sales;

(ii) financial year ending 30 June 2021: $637 from sales;

(iii) financial year ending 30 June 2022: $12,673 from the sale of goods;

(iv) financial year ending 30 June 2023: $449 from the sale of goods;

(i) the same profit and loss statements show that Giggle had a net loss in each of those financial years, noting that while this is after the key events, it reflects ongoing trading activity and thus continuity;

(j) Giggle had received loans from a company called WADD Holdings Pty Ltd, a company of which Ms Grover is a director, of $60,000 in the financial year ending 30 June 2019, and $479,477 in the financial year ending 30 June 2020, with Ms Grover's evidence

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