LCFY 6-K 2024 - Equibles

UNITEDSTATES

SECURITIESAND EXCHANGE COMMISSION

WASHINGTON,DC 20549

Form6-K

REPORTOF FOREIGN PRIVATE ISSUER

PURSUANTTO RULE 13a-16 OR 15d-16 OF THE

SECURITIESEXCHANGE ACT OF 1934

Forthe month of November 2024

CommissionFile Number: 001-41333

LOCAFYLIMITED

(Registrant’sname)

246AChurchill Avenue, Subiaco Western Australia 6008, Australia

(Addressof principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F ☒ Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

On November 11, 2024, Locafy Limited issued a press release, “Locafy Reports Fiscal Fourth Quarter and Full Year 2024 Results,” which is attached hereto as Exhibit 99.1.

Exhibit		Description of Exhibit

99.1		Press Release dated November 11, 2024

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	LOCAFY LIMITED

Date:<br> November 12, 2024	By:	/s/ Gavin Burnett
	Name:	Gavin<br> Burnett
	Title:	Chief<br> Executive Officer

Exhibit99.1

LocafyReports Fiscal Fourth Quarter and Full Year 2024 Results

PERTH,Australia – November 12, 2024 – Locafy Limited (Nasdaq: LCFY, LCFYW) (“Locafy” or the “Company”), a globally recognized software-as-a-service technology company specializing in “entity-based” search engine optimization (SEO), today reported financial results for the fiscal fourth quarter and full year ended June 30, 2024. All financial results are reported in Australian Dollars (AUD).

ManagementCommentary

“Our fiscal 2024 was truly a transformational period for Locafy,” said CEO Gavin Burnett. “The launch of our enhanced performance-based revenue model, which aligns more closely with how customers engage with our products compared to traditional sponsored advertising, has given us strong momentum in the evolving SEO landscape. Our services revenue surged by 231%, driven by a several commercial opportunities with publishers and resellers seeking “on-page” SEO solutions for their customers. The implementation of our proprietary Keystone technology to these customer websites has helped combat the decline in website traffic that many online publishers and businesses in general are experiencing, further solidifying our industry presence and credentials.

“Operationally, Locafy has heavily reduced its cost base, primarily from a decrease in headcount and technology expenses, which was made possible through increased automation in product deployments and streamlining products being offered to the market. The full impact of these cost reductions will be fully reflected in fiscal 2025.

“As we move into fiscal 2025, we believe that we are well-positioned to expand our suite of technologies in response to shifts in the SEO landscape. In an era of AI-driven content growth, we believe Locafy’s solutions will play a key role in helping our clients secure and maintain strong search positions. We are confident that our advanced capabilities will not only drive Locafy’s growth but also deliver superior results for our customers. We look forward to sharing more progress in the coming quarters.”

Fiscal2024 and Recent Operational Highlights

	●	Signed its first contracts related to the Company’s Article Accelerator technology to<br> media publishers in the U.S. and Australia. Given the recent seismic changes in the SEO landscape<br> which forced many publishers to remove “sponsored content” articles from their<br> high-authority editorial websites, Locafy believes it has laid the foundation for its Article<br> Accelerator solution to be packaged and marketed as a credible alternative to help restore<br> lost revenues for those publishers.
	●	Introduced the Hotfrog Proximity Page, a new application developed in partnership with Yext, allowing<br> businesses to create dynamic, SEO-optimized landing pages to enhance their online presence.<br> The application integrates with Yext’s platform, ensuring real-time updates and consistency<br> across digital listings. The Company intends to build on this product in fiscal 2025 to enable<br> connectivity with additional citation management partners.

	●	Signed a series of agreements with Localista, acquiring the digital assets of Scoop, providing<br> SEO consulting services, and adding Localista’s sales team as a reseller of its Article<br> Accelerator product. These deals aim to enhance Localista’s SEO performance while leveraging<br> its directory network to promote Locafy’s products, positioning both companies to capitalize<br> on the competitive online marketplace in Australia and New Zealand. The Company believes<br> the work undertaken to optimize the Localista website and to structurally separate paid advertorial<br> content from free editorial content provides a technical solution and a commercial model<br> that can be replicated for other publishers in the USA and Australian markets.

2024Fiscal Fourth Quarter Financial Results

Resultscompare the 2024 fiscal fourth quarter end (June 30, 2024) to the 2023 fiscal fourth quarter end (June 30, 2023) unless otherwise indicated.All financial results are reported in Australian Dollars (AUD).

	●	Total operating revenue decreased 4.7% to $1.2 million from $1.3 million in the comparable<br> year-ago period.

	●	Subscription revenue decreased 34.6% to $731,000 from $1.1 million in the comparable year-ago period.<br> For reporting purposes, the Company has reclassified and incorporated “Data”<br> revenues within “Subscription” revenues. The reclassification was done on the<br> basis that Data revenues are consistent with the nature of other subscription fee revenues<br> i.e. recurring and related to publishing content, as opposed to the method in which the content<br> data is received. Notwithstanding the reclassification, the decline in subscription revenue<br> had commenced from the beginning of the 2024 fiscal year and was mainly driven by extended<br> billing relief provided to customers transitioning their Proximity product campaigns onto<br> Locafy’s upgraded technology platform, as well as general churn among resellers. The<br> Company has sought to address these concerns by providing better reseller education as to<br> the reasonable outcomes from implementing its products, enhancing its reporting dashboard<br> to better articulate the value that its technology adds to an end user’s marketing<br> efforts and improved reseller support. The Company expect subscription revenues to remain<br> steady until the 2025 fiscal third quarter.

	●	Advertising revenue decreased 50.1% to $38,000 from $77,000 in the comparable year-ago period. Advertising<br> yields from existing ad units continue to underperform. To address this decline, the Company<br> is implementing strategies to change the type of advertising placements across its online<br> properties together with SEO strategies designed to improve audience (traffic).

	●	Services revenue increased 525.6% to $435,000 from $69,000 in the comparable year-ago period.<br> This increase was as a result of a significant SEO consulting project and a paid proof of<br> concept for the Company’s recently developed Article publication solution. This level<br> of services revenue is unlikely to be replicated in the near term, however, the work has<br> allowed the Company to advance its own technical and commercial capabilities and expand its<br> portfolio of digital assets.

	●	Other income decreased 95.9% to $29,000 from $709,000 in the comparable year-ago period. The<br> decrease in other income is partially due to R&D tax incentive grant received in the<br> 2023 fiscal year, which was not replicated during the 2024 fiscal year, lower gains from<br> the extinguishment of liabilities and a net foreign exchange gain in the comparable year-ago<br> period, which did not occur during the 2024 fiscal fourth quarter.

	●	Operating expenses increased 174.6% to $2.1 million from $770,000 in the comparable year-ago period.<br> The 2023 fiscal fourth quarter included significant adjustments relating to the reversal<br> of contractor termination expense provisions and an annual assessment of R&D expenses<br> that were capitalized. Excluding these adjustments, the Company’s underlying operating<br> expenses for 2023 fiscal fourth quarter was $2.5 million. Operating expenses for 2024 fiscal<br> fourth quarter included a write off of long-standing historical receivable balance, excluding<br> which, operating expenses would have been $1.6 million.

	●	Net loss was $883,000, or $0.66 per diluted share, compared to a net profit of $1.2 million,<br> or $1.03 per diluted share, in the comparable year-ago period. Excluding the 2024 fiscal<br> fourth quarter write offs (as detailed above) would have resulted in a net loss $350,000<br> or $0.26 per diluted share. Similarly, excluding the 2023 fiscal fourth quarter adjustment<br> to operating expenses (as detailed above) would have resulted in a net loss of $1.3 million<br> or $1.15 per diluted share, in the comparable year-ago period.

FiscalFull Year 2024 Financial Results

Resultscompare the 2024 fiscal year end (June 30, 2024) to the 2023 fiscal year end (June 30, 2023) unless otherwise indicated. All financialresults are reported in Australian Dollars (AUD).

	●	Total operating revenue decreased 22.8% to $4.2 million from $5.4 million in the comparable<br> year-ago period.

	●	Subscription revenue decreased 31.7% to $3.3 million from $4.9 million in the comparable year-ago<br> period. Compared to the fiscal third quarter of 2024, subscription revenue decreased 2.9%.<br> As previously mentioned, the decline in subscription revenue was primarily related to the<br> provision of extended billing relief to customers whose Proximity product campaigns were<br> affected by their transition to onto the Company’s upgraded technology platform, together<br> with general reseller churn. The Company expects subscription revenues to remain steady until<br> the 2025 fiscal third quarter.

	●	Advertising revenue decreased 20.1% to $251,000 from $316,000 in the comparable year-ago period.<br> The decline in advertising revenues resulted from the changes made by Google to its advertising<br> program during the year. The Company plans to implement a number of initiatives to improve<br> its advertising yields together with the expansion of its online property assets that can<br> carry advertising.

	●	Services revenue increased 231.3% to $561,000 from $169,000 in the comparable year-ago period,<br> driven by an increase in product sales which require implementation work. Once implemented,<br> these products are expected to derive monthly subscription revenues. In February 2024, the<br> Company announced an agreement to provide SEO consulting services to Localista for $500,000.<br> This work related to the upgrade of the entire website structure of an online property owned<br> by Localista comprising in excess of 700,000 individual listing pages, which the Company<br> completed over a three-month period ending in June 2024. Further, as previously announced,<br> Locafy separately acquired from Localista the digital assets of scoop.com.au to further its<br> R&D and commercial efforts. The scoop.com.au domain name is a well-recognized brand in<br> the travel, lifestyle and entertainment niche and, at the time of acquisition, the domain<br> name had a Moz Domain Authority score of 36, approximately 48,000 backlinks (including approximately<br> 5,000 Wikipedia backlinks) and ranked for over 157,000 relevant organic keywords (according<br> to Semrush). The Company’s due diligence suggested that to replicate the asset would<br> cost in excess of $500,000 and take several years to complete. Notwithstanding the foregoing,<br> under accounting standards it was deemed that the scoop.com.au asset and services revenue<br> transactions were tied together and the value of both equaled $58,500, which is equivalent<br> to the cost of providing the consulting services. Accordingly, this position is reflected<br> in the Company’s financial statements.

	●	Other income decreased 93.8% to $61,000 from $993,000 in the comparable year-ago period. The<br> decrease was primarily due to R&D tax incentive grant received in the 2023 fiscal year,<br> which was not replicated during the 2024 fiscal year. The Company’s 2024 fiscal year<br> grant is currently being prepared and funds are expected to be received in the 2025 fiscal<br> year.

	●	Operating expenses decreased 30.2% to $7.1 million from $10.2 million in the comparable year-ago<br> period. The decrease was primarily due to a 38.5% decrease in employment expenses to $3.2<br> million from $5.3 million in the comparable year-ago period as a result of a reduction in<br> headcount resulting from the Company’s ongoing efforts to streamline its technology,<br> product suite and the geographical markets it serves. Technology expenses also decreased<br> 48.2% to $891,000 from $1.7 million in the comparable year-ago period, which decrease largely<br> reflects the cost savings as a result of upgrades made to the Company’s technology<br> platform.

	●	Net loss for the year to date was $3.0 million, or $2.30 per diluted share, compared to a<br> net loss of $3.9 million, or $3.69 per diluted share, in the comparable year-ago period.

KeyPerformance Indicators (KPIs)

As part of its updated go-to-market strategy, Locafy has shifted its focus from traditional KPIs, which are no longer seen as adequate indicators of long-term success. The company now prioritizes Monthly Recurring Revenue (MRR) as the key measure of performance across its platform. Unless otherwise stated, KPI data is as of the fiscal fourth quarter of 2024 (ended June 30, 2024).

●	Monthly recurring revenue (MRR) for the 2024 fiscal fourth quarter was $256,000, a 35.6% decrease<br> from the comparable year-ago period, and a 3.7% decrease compared to the 2024 fiscal third<br> quarter.

For more information, please see Locafy’s investor relations website at investors.locafy.com.

AboutLocafy

Founded in 2009, Locafy’s (Nasdaq: LCFY, LCFYW) mission is to revolutionize the US$700 billion SEO sector. We help businesses and brands increase search engine relevance and prominence in a specific proximity using a fast, easy, and automated approach. For more information, please visit www.locafy.com.

AboutKey Performance Indicators

Locafy defines MRR as the value of all recurring subscription contracts with active entitlementsas at the end of each month. MRR across a period is the average of each month’s MRR within that period.

Locafy’srecent platform upgrade caused a significant change to the calculation of average page metrics, and Locafy management no longer viewstotal active reseller count and total end user count as relevant indicators of the performance of Locafy’s technology. The Companymay introduce additional KPIs in future quarters if deemed relevant long-term indicators of performance.

Forward-LookingStatements

Thispress release contains “forward-looking statements” that are subject to substantial risks and uncertainties. All statements,other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statementscontained in this press release may be identified by the use of words such as “subject to”, “believe,” “anticipate,”“plan,” “expect,” “intend,” “estimate,” “project,” “may,” “will,”“should,” “would,” “could,” “can,” the negatives thereof, variations thereon and similarexpressions, or by discussions of strategy, although not all forward-looking statements contain these words. Although the Company believesthat the expectations reflected in such forward-looking statements are reasonable, they do involve assumptions, risks, and uncertainties,and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speakonly as of the date of this press release. The Company’s actual results could differ materially from those anticipated in theseforward-looking statements as a result of a variety of factors and risk factors, including those discussed in the Company’s filingswith the Securities and Exchange Commission (the “SEC”), including the Company’s Annual Report on Form 20-F filed withthe SEC on November 12, 2024, and available on its website (http://www.sec.gov). All forward-looking statements attributable tothe Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required underthe securities laws, the Company does not assume a duty to update these forward-looking statements.

InvestorRelations Contact

Matt Glover or Matt Szot

Gateway Investor Relations

(949) 574-3860

[email protected]

-FinancialTables to Follow-

LocafyLimited

ConsolidatedStatement of Profit or Loss and Other Comprehensive Income

				FY2023<br> AUD (audited)
Revenue	1,203,566		4,151,088		5,376,693
Other income	29,119		61,360		993,493
Technology expense	(214,331	)	(890,778	)	(1,718,974	)
Employee benefits expense	(916,151	)	(3,238,568	)	(5,267,246	)
Occupancy expense	(26,360	)	(101,415	)	(113,572	)
Advertising expense	(7,895	)	(187,046	)	(318,492	)
Consultancy expense	(195,924	)	(853,850	)	(874,638	)
Depreciation and amortization expense	(394,339	)	(1,473,999	)	(1,355,170	)
Other expenses	(21,864	)	(68,826	)	(213,051	)
Impairment of financial<br> assets	(339,382	)	(272,236	)	(295,262	)
Operating loss	(883,561	)	(2,874,270	)	(3,786,219	)
Financial cost	(16,539	)	(114,199	)	(105,367	)
Loss before income tax	(900,100	)	(2,988,469	)	(3,891,586	)
Income tax expense	-		-		-
Loss<br> for the period	(900,100	)	(2,988,469	)	(3,891,586	)

Other comprehensive income
Items that will be reclassified<br> subsequently to profit and loss
Exchange differences on<br> translating foreign operations	12,274		3,023		(23,010	)
Total<br> comprehensive loss for the period	(887,826	)	(2,985,446	)	(3,914,596	)

Earnings per share
Basic loss per share	(0.66	)	(2.30	)	(3.69	)
Diluted loss per share	(0.66	)	(2.30	)	(3.69	)

All values are in US Dollars.

LocafyLimited

ConsolidatedStatement of Financial Position

				As<br> at 30<br> Jun 2023 AUD (audited)
Assets
Cash and cash equivalents	275,875		724,581		3,174,700
Trade and other receivables	904,564		868,492		1,288,513
Other assets	294,355		453,763		356,782
Current<br> assets	1,474,794		2,046,836		4,819,995
Property, plant and equipment	196,929		317,618		380,018
Right of use assets	280,810		268,558		314,596
Intangible assets	4,204,966		4,022,887		3,720,272
Non-current<br> assets	4,682,705		4,609,063		4,414,886
Total<br> assets	6,157,499		6,655,899		9,234,881

Liabilities
Trade and other payables	1,252,503		1,289,251		2,507,573
Borrowings	271,600		271,600		301,600
Provisions	211,300		226,547		214,465
Accrued expenses	496,749		357,776		512,611
Lease liabilities	128,669		120,287		85,165
Contract and other liabilities	147,640		139,120		152,211
Current<br> liabilities	2,508,461		2,404,581		3,773,625
Lease liabilities	203,909		269,500		332,578
Provisions	133,399		124,009		138,721
Non-current<br> liabilities	337,308		393,509		471,299
Total<br> liabilities	2,845,769		2,798,090		4,244,924
Net<br> assets	3,311,730		3,857,809		4,989,957

Equity
Issued capital	48,588,888		47,805,798		47,930,486
Reserves	2,925,679		2,696,635		2,404,933
Accumulated losses	(48,202,837	)	(46,644,624	)	(45,345,462	)
Total<br> equity	3,311,730		3,857,809		4,989,957

All values are in US Dollars.

LocafyLimited

ConsolidatedStatement of Cash Flows

				FY2023<br> AUD (audited)
Cash flows from operating<br> activities
Receipts from customers (inclusive<br> of GST)	605,855		3,098,793		4,463,725
Payments to suppliers and employees (inclusive<br> of GST)	(475,965	)	(4,658,997	)	(7,005,510	)
R&D Tax Incentive and government grants	-		561,501		386,181
Financial cost	(16,539	)	(114,199	)	(105,367	)
Net<br> cash used by operating activities	113,351		(1,112,902	)	(2,260,971	)

Cash flows from investing<br> activities
Purchase of intellectual property	(492,943	)	(2,166,587	)	(1,617,446	)
Purchase of property, plant and equipment	-		-		(2,170	)
Maturity of term deposit	-		40,000		-
Net<br> cash used by investing activities	(492,943	)	(2,126,587	)	(1,619,616	)

Cash flows from financing<br> activities
Proceeds from issue of shares	202,304		769,936		3,295,822
Payment for share issue costs	(22,310	)	(313,643	)	(403,373	)
Repayment of borrowings	-		(30,000	)	(6,500	)
Leasing liabilities	(29,228	)	(85,165	)	(32,673	)
Net<br> cash from financing activities	150,766		341,128		2,853,276

Net decrease in cash and cash equivalents	(228,826	)	(2,898,361	)	(1,027,311	)
Net foreign exchange difference	20,111		(464	)	118,276
Cash and cash equivalents<br> at the beginning of the period	484,590		3,174,700		4,083,735
Cash<br> and cash equivalents at the end of the period	275,875		275,875		3,174,700

All values are in US Dollars.