1414 DEGREES LIMITED — Interim / Quarterly Report 2021

Feb 25, 2021

Appendix 4D Half year report

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Appendix 4D

Half Year Report to the Australian Securities Exchange

1. Details of the reporting period and the previous corresponding period

Name of Entity : 1414 DEGREES LIMITED ABN : 57 138 803 620 Half Year Ended : 31 Dec 2020 Previous Corresponding Reporting Period: 31 Dec 2019

2. Results for announcement to the market

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31 Dec 2020 31 Dec 2019 Change Change
Key Information AUD$ AUD$ % AUD$
2.1 Other income 302,674 94,919 219% 207,755
2.2 Profit/(Loss) from ordinary activities after tax attributable to members (1,327,795) (1,516,286) (12%) 188,491
2.3 Net Profit/ (Loss) for the period attributable to members (1,327,795) (1,516,286) (12%) 188,491
Franked amount per
2.4 Dividends Amount per security security
Interim Dividend Nil Nil
Final Dividend Nil Nil
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• 2.5 Record date for determining entitlements to the dividends (if any):

Not Applicable

• 2.6 Brief explanation of any of the figures reported above necessary to enable the figures to be understood:

Please refer to the Review of Operations contained in the Directors’ Report which forms part of the attached Interim Financial Report for details.

3. Net tangible assets per ordinary share

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||||
|---|---|---|
|31 Dec 2020|31 Dec 2019|
|Security|AUD (Cents)|AUD (Cents)|
|Ordinary shares|5.25|6.70|

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1. Control gained or lost over entities during the period, and those having material effect

Not Applicable

Page 1

Appendix 4D Half year report

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5. Details Relating to Dividends

Information	31 Dec 2019	31 Dec 2018
Date the dividend is payable :	n/a	n/a
Record date to determine entitlement to the dividend :	n/a	n/a
Amount per security (AUD Cents) :	n/a	n/a
Total dividend (AUD$) :	n/a	n/a
Amount per security of foreign sourced dividend or distribution :	n/a	n/a

6. Dividend or distribution reinvestment plan details

Dividend or distribution reinvestment plan details
Information	31 Dec 2019	31 Dec 2018
Details of any dividend reinvestment plans in operation :	n/a	n/a
The last date for receipt of an election notice for participation in any dividend reinvestment plans :	n/a	n/a

7. Details of Associates and Joint Venture Entities

Not applicable.

8. Foreign entities

Not applicable.

9. Audit dispute or qualification

The interim financial statements for the period ended 31 December 2020 have no audit dispute or qualification.

10. Attachments Forming Part of Appendix 4D

Attachment Number	Details
1	Interim Financial Reports

Signed By Company Secretary

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Richard Willson
Date: 26 February 2020
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1414 DEGREES LIMITED

ACN 138 803 620

INTERIM FINANCIAL REPORTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2020

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1414 DEGREES LIMITED ACN 138 803 620

INTERIM FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2020

CONTENTS

	Page
Direc�ors' Repor�	1
S�a�emen� of Profi� or Loss and O�her Comprehensi�e Income	2
S�a�emen� of Financial Posi�ion	3
S�a�emen� of Cash Flo�s	4
S�a�emen� of Changes in Eq�i��	5
No�es �o �he Financial S�a�emen�s	6
Direc�ors' Declara�ion	9
Independen� A�di�or's Repor�	10
A�di�or Independence Declara�ion	12

Page 1

1414 DEGREES LIMITED ACN 138 803 620

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DIRECTORS' REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2020

The direc�ors of 1414 Degrees Limi�ed presen� �heir repor� on �he gro�p for �he half �ear ended 31 December 2020.

DIRECTORS

The follo�ing persons �ere direc�ors of 1414 Degrees Limi�ed d�ring �he �hole of �he half �ear and �p �o �he da�e of �his repor�, �nless o�her�ise s�a�ed: Ke�in Charles Moriar�� - Chairman Jamie S�mmons - Managing Direc�or (Appoin�ed 4 Jan�ar� 2021) Dana Larson Ian Li��le (Resigned 1 J�l� 2020) Penelope Be��ison (Resigned 28 J�l� 2020) Richard Wilson (Appoin�ed 2 J�l� 2020) Pe�er Gan (Appoin�ed 4 Jan�ar� 2021)

COMPANY SECRETARY

Richard Willson

REVIEW OF OPERATIONS

A s�mmar� of res�l�s is se� o�� belo�:

The gro�p's opera�ing loss for �he half �ear ended 31 December 2020 �as $1,327,795 (6 mon�hs �o December 2019: loss

D�ring �he half �ear �he Gro�p s�ccessf�ll� raised $3.125m in a Share P�rchase Plan �o f�nd engineering and financial modelling for de�elopmen� of i�s A�rora Projec�. I� also res�r�c��red i�s board and senior managemen� �o deli�er i�s core �echnolog� and genera�e re�en�es.

T�o s�ages of opera�ional and financial modelling for �he A�rora Projec� poin�ed �o significan� re�en�e s�reams in �he Na�ional Elec�rici�� Marke� (NEM), par�ic�larl� from pro�ision of Freq�enc� Con�rol Ancillar� Ser�ices (FCAS) and arbi�rage. The ini�ial models �sed Li-ion ba��eries charged from PV and �he grid. F�r�her modelling incorpora�ing �he Compan��s �hermal TESS-GRID energ� s�orage s�s�em sho�ed promising re�en�e projec�ions in �he NEM. As a res�l�, �he Gro�p is proposing a h�brid ba��er� and TESS plan� �ha� gained Cro�n Sponsorship pos� HY end.

Tes�ing and refinemen� of �he Gro�p�s ne� SiBo� �echnolog� con�in�ed �o confirm rob�s� performance in air and comb�s�ion en�ironmen�s. Design is �nder�a� for a s�aged scale �p �o a pilo� 2MW o��p�� a� �he A�rora Projec�, incl�ded in �he Cro�n Sponsorship for de�elopmen�.

The po�en�ial for SiBo� �o deli�er highl� efficien� energ� s�orage a� a compe�i�i�e le�elised cos� a��rac�ed major in�eres� from high �empera��re ind�s�ries. The Gro�p has affilia�ed �i�h �he Hea�� Ind�s�r� Lo�-carbon Transi�ion Co-opera�i�e Research Cen�re (HILT CRC) bid �o engage �i�h �arge� companies and e�plore SiBo� applica�ions �o decarbonise hea� for ind�s�rial processes and po�er high �empera��re h�drogen prod�c�ion.

The Gro�p's GAS-TESS �eam and SA Wa�er�s Glenelg WWTP opera�ors progressed final appro�als of �he solar PV, reciproca�ing gas engines and GAS-TESS as an in�egra�ed genera�ion si�e on �he NEM. The GAS-TESS �eam form�la�ed a plan �o impro�e �he performance of �he e�is�ing GAS-TESS ins�alla�ion. Conc�rren�l� �he� cond�c�ed e��ensi�e b�siness case modelling �o dri�e commercialisa�ion oppor��ni�ies, in par�ic�lar of a h�brid po�er plan� �i�h engines �o ma�imise �he �al�e of energ� from �ariable biogas prod�c�ion and �o minimise flaring.

F���re O��look

The Gro�p's ne�l� appoin�ed Managing Direc�or, Jamie S�mmons is �orking �o realise earl� re�en�es from �he A�rora Projec� and applica�ions of SiBo� �echnolog� in �he GAS-TESS and TESS-GRID. We look for�ard �o repor�ing f�r�her progress for shareholders o�er coming mon�hs.

This repor� is made in accordance �i�h a resol��ion of direc�ors.

Ke�in Moriar�� Chairman

Adelaide, �his 26�h da� of Febr�ar� 2021

Page 2

1414 DEGREES LIMITED

ACN 138 803 620

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STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2020

Note Other comprehensive income for the half �ear Total comprehensive income for the half �ear Basic earnings per share Diluted earnings per share O�her Income Research and De�elopmen� E�penses Adminis�ra�ion and Professional E�penses Finance Cos�s O�her E�penses Profit / (Loss) before income tax Income �a� benefi� / (e�pense) Occ�panc� E�penses Marke�ing E�penses Deprecia�ion and Amor�isa�ion Emplo�ee Benefi�s E�pense Share Based Pa�men�s (Eq�i��-se��led) Direc�ors Fees Profit / (Loss) for the half �ear

31-Dec-20 31-Dec-19 AUD$ AUD$ 302,674 94,919 3,004 2,811 542,307 357,383 28,926 - 29,507 39,926 81,371 137,226 598,791 773,502 138,611 100,227 18,333 44,435 69,204 13,560 120,415 142,135 (1,327,795) (1,516,286) - - (1,327,795) (1,516,286) - - (1,327,795) (1,516,286) (0.72) cen�s (0.88) cen�s (0.72) cen�s (0.88) cen�s Half �ear

The abo�e s�a�emen� of profi� or loss and o�her comprehensi�e income sho�ld be read in conj�nc�ion �i�h �he accompan�ing no�es.

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1414 DEGREES LIMITED ACN 138 803 620

STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2020

Note ASSETS Current assets Cash and cash eq�i�alen�s 3 Trade and o�her recei�ables O�her c�rren� asse�s Total current assets Non-current assets Proper��, plan� and eq�ipmen� In�angible asse�s 4 Righ�-of-�se asse�s 5 Total non-current assets Total assets LIABILITIES Current liabilities Trade and o�her pa�ables Pro�ision for emplo�ee benefi�s Lease liabili�ies Total current liabilities Non-current liabilities Pro�ision for emplo�ee benefi�s Lease liabili�ies 6 Total non-current liabilities Total liabilities EQUITY Con�rib��ed eq�i�� 7 Share Based Pa�men�s Reser�e Acc�m�la�ed losses Total equit� Net assets

31-Dec-20 30-Jun-20 AUD$ AUD$ 5,696,823 4,395,479 1,809,104 1,436,805 153,865 142,882 7,659,792 5,975,166 176,495 204,155 8,565,291 8,359,688 2,657,030 2,674,765 11,398,816 11,238,608 19,058,608 17,213,774 307,733 355,139 68,026 90,628 110,000 129,938 485,759 575,705 22,823 14,906 2,489,643 2,489,643 2,512,466 2,504,549 2,998,225 3,080,254 16,060,383 14,133,520 32,414,929 29,197,369 154,066 116,968 (16,508,612) (15,180,817) 16,060,383 14,133,520

The abo�e s�a�emen� of financial posi�ion sho�ld be read in conj�nc�ion �i�h �he accompan�ing no�es.

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1414 DEGREES LIMITED ACN 138 803 620

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STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2020

Note Cash flows from operating activities Cash recei�ed from c�s�omers (incl GST) Cash paid �o s�ppliers and emplo�ees Go�ernmen� gran�s In�eres� recei�ed In�eres� paid Net cash inflow/(outflow) from operating activities Cash flows from investing activities P�rchase of proper��, plan� and eq�ipmen� P�rchase of s�bsidiar� Pa�men�s for prod�c� de�elopmen� ac�i�i�ies Go�ernmen� gran� recei�ed and �sed for prod�c� de�elopmen� Inflo� from gaining con�rol o�er en�i�� Research and de�elopmen� �a� offse� recei�ed and �sed for in�angible asse� Net cash inflow/(outflow) from investing activities Cash flows from financing activities Proceeds from borro�ings Repa�men� of borro�ings Transac�ion cos�s rela�ed �o iss�es of shares, con�er�ible no�es or op�ions Proceeds from e�ercise of share op�ions Proceeds from �he iss�e of shares Net cash inflow/(outflow) from financing activities Ne� increase/(decrease) in cash and cash eq�i�alen�s Ne� foreign e�change differences Cash and cash eq�i�alen�s a� beginning of period Cash and cash equivalents at end of period 3

31-Dec-20 31-Dec-19 AUD$ AUD$ 740 24,023 (1,974,811) (1,890,120) 365,300 12,455 10,072 136,076 - (9,499) (1,598,699) (1,727,065) (71) (791) - (2,000,000) (215,697) (2,282,897) - 156,000 - 1,000 - - (215,768) (4,126,688) - - - - (59,492) - - - 3,175,540 - 3,116,048 - 1,301,581 (5,853,753) (237) 13,843 4,395,479 9,721,192 5,696,823 3,881,282 Half �ear

The abo�e s�a�emen� of cash flo�s sho�ld be read in conj�nc�ion �i�h �he accompan�ing no�es.

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1414 DEGREES LIMITED ACN 138 803 620

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STATEMENT OF CHANGES IN EQUITY

FOR THE HALF-YEAR ENDED 31 DECEMBER 2020

Balance at 1 Jul� 2019 - Restated Adj�s�men� for change in acco�n�ing polic� (no�e 1) Balance at 1 Jul� 2019 - Restated Loss for �he half �ear O�her comprehensi�e income Total comprehensive income for the half �ear Emplo�ee Share Scheme - Performance Righ�s Val�a�ion Emplo�ee Share Scheme - Con�ersion of Performance Righ�s Balance at 31 December 2019 Balance at 1 Jul� 2020 Loss for �he half �ear O�her comprehensi�e income Total comprehensive income for the half �ear Share Based Pa�men�s Share Based Pa�men� Cancella�ion Share Based Pa�men� Iss�e Emplo�ee Share Scheme - Performance Righ�s Val�a�ion Emplo�ee Share Scheme - Con�ersion of Performance Righ�s Con�rib��ions of eq�i�� ne� of �ransac�ion cos�s Balance at 31 December 2020 Transactions with owners in their capacit� as owners Transactions with owners in their capacit� as owners

Contributed equit� Reserves Accumulated Losses Total equit� $ $ $ $ 29,097,294 123,111 (12,294,474) 16,925,931 (34,718) (34,718) 29,097,294 123,111 (12,329,192) 16,891,213 - - (1,516,286) (1,516,286) - - - - - - (1,516,286) (1,516,286) - 100,227 - 100,227 13,300 (13,300) - - 13,300 86,927 - 100,227 29,110,594 210,038 (13,845,478) 15,475,154 29,197,369 116,968 (15,180,817) 14,133,520 - - (1,327,795) (1,327,795) - - - - - - (1,327,795) (1,327,795) - - - - - - - - - - - - - 138,611 - 138,611 101,513 (101,513) - - 3,116,047 - - 3,116,047 3,217,560 37,098 - 3,254,658 32,414,929 154,066 (16,508,612) 16,060,383

The abo�e s�a�emen� of changes in eq�i�� sho�ld be read in conj�nc�ion �i�h �he accompan�ing no�es.

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1414 DEGREES LIMITED ACN 138 803 620

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NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2020

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of Preparation

These in�erim financial s�a�emen�s are general p�rpose financial s�a�emen�s prepared in accordance �i�h A�s�ralian Acco�n�ing S�andard AASB 134: In�erim Financial Repor�ing. The gro�p is a for-profi� compan� for financial repor�ing p�rposes �nder A�s�ralian Acco�n�ing S�andards.

The financial s�a�emen�s ha�e been prepared on an accr�als basis and are based on his�orical cos�s modified b� �he re�al�a�ion of selec�ed non-c�rren� asse�s, financial asse�s and financial liabili�ies for �hich �he fair �al�e basis of acco�n�ing has been applied. Amo�n�s ha�e been ro�nded �o �hole dollars.

The follo�ing significan� acco�n�ing policies ha�e been adop�ed in �he prepara�ion and presen�a�ion of �he financial s�a�emen�s. The acco�n�ing policies ha�e been consis�en�l� applied, �nless o�her�ise s�a�ed.

(b) Accounting Policies

The same acco�n�ing policies and me�hods of comp��a�ion ha�e been follo�ed in �his in�erim financial repor� as �ere applied in �he mos� recen� ann�al financial s�a�emen�s.

The gro�p has considered �he implica�ions of an� o�her ne� or amended Acco�n�ing S�andards, b�� de�ermined �ha� �heir applica�ion in �he financial s�a�emen�s is ei�her no� rele�an� or no� ma�erial.

NOTE 2 ACCOUNTING ESTIMATES AND JUDGEMENTS

The direc�ors e�al�a�e es�ima�es and j�dgmen�s incorpora�ed in�o �he financial s�a�emen�s based on his�orical kno�ledge and bes� a�ailable c�rren� informa�ion. Es�ima�es ass�me a reasonable e�pec�a�ion of f���re e�en�s and are based on c�rren� �rends and economic da�a, ob�ained bo�h e��ernall� and �i�hin �he gro�p.

Ke� Estimates - Impairment

The gro�p assesses impairmen� a� �he end of each repor�ing period b� e�al�a�ing condi�ions and e�en�s specific �o �he compan� �ha� ma� be indica�i�e of impairmen� �riggers. Reco�erable amo�n�s of rele�an� asse�s are reassessed �sing �al�e-in-�se calc�la�ions �hich incorpora�e �ario�s ke� ass�mp�ions.

Wi�h respec� �o cash flo� projec�ions for in�angible asse�s �i�h an indefini�e �sef�l life and �hose �i�h a fini�e �sef�l life b�� no� �e� considered read� for �se, rele�an� inp��s ha�e been fac�ored in�o �al�a�ion models on �he basis of managemen��s e�pec�a�ions regarding �he gro��h of �he marke� and �he gro�p's abili�� �o cap��re marke� share. Pre-�a� disco�n� ra�es of 11% ha�e been �sed in all models.

Wi�h respec� �o cash flo� projec�ions for �he good�ill on b�siness acq�isi�ions, �he calc�la�ions �se cash flo� projec�ions based on �he mos� readil� a�ailable modelling �ork performed for/b� �he en�i��. Rele�an� inp��s ha�e been fac�ored in�o models on �he basis of managemen��s e�pec�a�ions regarding po�en�ial re�en�es and �he gro�p's abili�� �o cap��re marke� share. Pre-�a� disco�n� ra�es of 11% ha�e been �sed in all models.

The good�ill on b�siness acq�si�ion and in�angible asse� is �es�ed for impairmen� ann�all� a� �he end of �he repor�ing period.

No impairmen� has been recognised in respec� of in�angible asse�s a� �he end of �he repor�ing period.

Ke� Judgements - Product Development

Incl�ded �i�hin in�angible asse�s a� �he end of �he repor�ing period is Prod�c� De�elopmen� �i�h a ne� carr�ing �al�e of $6,693,823 (30 J�ne 2020: $5,109,045) being �he carr�ing �al�e of �he Prod�c� De�elopmen� in�angible asse� of $16,934,706 (30 J�ne 2020: $16,296,263) less �he associa�ed Go�ernmen� Gran� f�nding of $2,568,000 (30 J�ne 2020: $2,568,000) and �he R&D ref�ndable �a� offse�s applied of $7,672,883 (30 J�ne 2020: $7,240,043). The direc�ors belie�e �ha� �hile �he de�elopmen� and commercialisa�ion of �he �echnolog� remains in-progress and �he asse� is no� �e� genera�ing economic benefi�s (be�ond c�s�omer �rials), i� is no� considered read� for �se. A reliable es�ima�e for �he �sef�l life of �he asse� �ill onl� be capable of being de�ermined once �he asse� is assessed as read� for �se, af�er �hich poin�, amor�isa�ion �ill commence. ��

NOTE 3 CASH AND CASH EQUIVALENTS Cash a� bank Cash �erm deposi�s	31-Dec-20 30-Jun-20 AUD$ AUD$ 5,696,823 4,395,479 - - 5,696,823 4,395,479

An amo�n� of $168,847 incl�ded as cash has been se� aside �o s�ppor� a bank g�aran�ee iss�ed �o �he landlord of �he ren�ed loca�ions.

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1414 DEGREES LIMITED ACN 138 803 620

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NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2020

NOTE 4 INTANGIBLE ASSETS P��d�c� De�e����e�� - I��e��ec��a� P���e��� In�angible asse�s �nder de�elopmen� - a� cos� Go�ernmen� Gran�s applied R&D Ref�ndable Ta� Offse� applied Rec��c���a���� �f P��d�c� De�e����e�� - I��e��ec��a� P���e��� Balance a� �he beginning of �he half �ear Addi�ions Go�ernmen� Gran�s applied R&D Ref�ndable Ta� Offse� applied Closing carr�ing �al�e	31-Dec-20 30-Jun-20 AUD$ AUD$ 16,934,706 16,296,263 (2,568,000) (2,568,000) (7,672,883) (7,240,043) 6,693,823 6,488,220 6,488,220 5,109,045 638,443 3,278,550 - (236,000) (432,840) (1,663,375) 6,693,823 6,488,220

In�ellec��al proper�� consis�s of SiBo� �hermal energ� s�orage (TES) and GAS-TESS and TESS-GRID applica�ions. No amor�isa�ion has been recognised as �he in�ellec��al proper�� is no� a�ailable for �se as a� 31 December 2020. No impairmen� has been recognised pending a re�ie� of impairmen� indica�ors and cashflo� forecas�s a� 30 J�ne 2021.

The go�ernmen� gran� rela�es �o accelera�ing �he commercialisa�ion of �he gro�p's in�ellec��al proper��.

G��d���� �� b����e�� ac��������� Good�ill on b�siness acq�isi�ion	1,871,468 1,871,468
	1,871,468 1,871,468
Rec��c���a���� �f G��d���� �� b����e�� ac��������� Balance a� �he beginning of �he half �ear Addi�ions	1,871,468 - - 1,871,468
Closing carr�ing �al�e	1,871,468 1,871,468
Good�ill on b�siness acq�isi�ion rela�es �o �he p�rchase of SolarReser�e II P�� L�d (Renamed �o SiliconA�rora P�� L�d), comple�ed on 12 December 2019.
To�al In�angible Asse�s	8,565,291 8,359,688
NOTE 5 NON-CURRENT ASSETS - RIGHT-OF-USE ASSETS Land and b�ildings - righ�-of-�se Less: Acc�m�la�ed deprecia�ion	3,847,152 3,847,152 (1,190,122) (1,172,387)
	2,657,030 2,674,765
NOTE 6 NON-CURRENT LIABILITIES - LEASE LIABILITIES Lease liabili�ies Addi�ions �o �he righ�-of-�se asse�s d�ring �he half-�ear �ere nil (2020: $2,728,842.)	2,489,643 2,489,643
NOTE 7 CONTRIBUTED EQUITY Share capital Ordinar� shares - a��horised, iss�ed and f�ll� paid opening balance Shares iss�ed Emplo�ee Share Scheme - Con�ersion of Performance Righ�s Con�ersion of con�er�ible no�es E�ercise of share op�ions Share applica�ions recei�ed Share based pa�men� Cos�s of iss�e	31-Dec-20 31-Dec-20 No. of Shares AUD$ 172,904,923 29,197,369 26,463,035 3,175,540 617,500 101,513 - - - - - - - - - (59,493)
Ordinar� shares - a��horised, iss�ed and f�ll� paid closing balance	199,985,458 32,414,929

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1414 DEGREES LIMITED ACN 138 803 620

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2020

NOTE 7 CONTRIBUTED EQUITY (Continued)

Ordinar�shareholders are en�i�led �o par�icipa�e in di�idends and �he proceeds on �inding �p of �he gro�p in propor�ion �o �he n�mber of and amo�n�s paid on �he shares held. E�er� ordinar� shareholder presen� a� a mee�ing in person or b� pro�� is en�i�led �o one �o�e on a sho� of hands or b� poll. Ordinar� shares ha�e no par �al�e.

Capital Management

Managemen� con�rols �he capi�al of �he gro�p in order �o ens�re �ha� �he gro�p can f�nd i�s opera�ions and con�in�e as a going concern.

The gro�p's deb� and capi�al incl�des ordinar� share capi�al and financial liabili�ies, s�ppor�ed b� financial asse�s. There are no e��ernall� imposed capi�al req�iremen�s.

Managemen� effec�i�el� manages �he gro�p's capi�al b� assessing �he gro�p's financial risks and adj�s�ing i�s capi�al s�r�c��re in response �o changes in �hese risks and in �he marke�. There ha�e been no changes in �he s�ra�eg� adop�ed b� managemen� �o con�rol �he capi�al of �he gro�p since �he prior �ear and �he objec�i�es for managing capi�al ha�e been me�.

NOTE 8 CONTINGENCIES

C�����ge�� L�ab�����e�

A� 31 December 2020 �hose charged �i�h go�ernance of �he gro�p no�e �ha� �here are no kno�n con�ingen� liabili�ies (2019: nil).

NOTE 9 SUBSEQUENT EVENTS There is no s�bseq�en� e�en� �o disclose.

NOTE 10 RELATED PARTY

Transac�ions be��een rela�ed par�ies are on normal commercial �erms and condi�ions no more fa�o�rable �han �hose a�ailable �o o�her par�ies �nless o�her�ise s�a�ed.

Page 9

1414 DEGREES LIMITED ACN 138 803 620

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DIRECTORS' DECLARATION

In accordance �i�h a resol��ion of �he direc�ors of 1414 Degrees Limi�ed, �he direc�ors of �he compan� declare �ha�:

• 1 The financial s�a�emen�s, comprising �he s�a�emen� of profi� or loss and o�her comprehensi�e income, s�a�emen� of financial posi�ion, s�a�emen� of cash flo�s, s�a�emen� of changes in eq�i�� and accompan�ing no�es are in accordance �i�h The Corpora�ions Ac� 2001, incl�ding:

• a. compl�ing �i�h Acco�n�ing S�andard AASB 134: In�erim Financial Repor�ing; and

• b. gi�e a �r�e and fair �ie� of �he compan�'s financial posi�ion as a� 31 December 2020 and i�s performance for �he half �ear ended on �ha� da�e.

• 2 In �he direc�ors' opinion �here are reasonable gro�nds �o belie�e �ha� �he compan� �ill be able �o pa� i�s deb�s as and �hen �he� become d�e and pa�able.

This declara�ion is made in accordance �i�h a resol��ion of �he Board of Direc�ors and is signed for and on behalf of �he direc�ors b�:

Ke�in Moriar�� Chairman

Adelaide

Da�ed �his 26�h da� of Febr�ar� 2021

Tel: +61 8 7324 6000 Level 7, BDO Centre Fax: +61 8 7324 6111 420 King William Street www.bdo.com.au Adelaide SA 5000 GPO Box 2018, Adelaide SA 5001 AUSTRALIA

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INDEPENDENT AUDITOR’S REVIEW REPORT

TO THE MEMBERS OF 1414 DEGREES LIMITED

Report on the Half-Year Financial Report

Conclusion

We have reviewed the half-year financial report of 1414 Degrees Limited (the Company) and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at 31 December 2020, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the halfyear ended on that date, a summary of statement of accounting policies and other explanatory information, and the directors’ declaration.

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the accompanying half-year financial report of the Group does not comply with the Corporations Act 2001 including:

• (i) Giving a true and fair view of the Group’s financial position as at 31 December 2020 and of its financial performance for the half-year ended on that date; and

• (ii) Complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

Basis for conclusion

We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity . Our responsibilities are further described in the Auditor’s Responsibilities for the Review of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to the audit of the annual financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We confirm that the independence declaration required by the Corporations Act 2001 which has been given to the directors of the Company, would be the same terms if given to the directors as at the time of this auditor’s review report.

Responsibility of the directors for the financial report

The directors of the Company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

BDO Audit (SA) Pty Ltd ABN 33 161 379 086 is a member of a national association of independent entities which are all members of BDO (Australia) Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (SA) Pty Ltd and BDO (Australia) Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.

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Auditor’s responsibility for the review of the financial report

Our responsibility is to express a conclusion on the half-year financial report based on our review. ASRE 2410 requires us to conclude whether we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the Group’s financial position as at 31 December 2020 and its financial performance for the half-year ended on that date and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

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BDO Audit (SA) Pty Ltd

Paul Gosnold Director Adelaide, 26 February 2021

Tel: +61 8 7324 6000 Fax: +61 8 7324 6111 www.bdo.com.au

Level 7, BDO Centre 420 King William Street Adelaide SA 5000 GPO Box 2018, Adelaide SA 5001 AUSTRALIA

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DECLARATION OF INDEPENDENCE

BY PAUL GOSNOLD

TO THE DIRECTORS OF 1414 DEGREES LIMITED

As lead auditor for the review of 1414 Degrees Limited for the half-year ended 31 December 2020, I declare that, to the best of my knowledge and belief, there have been:

1. No contraventions of the auditor independence requirements of the Corporations Act 2001 relation to the review; and

2. No contraventions of any applicable code of professional conduct in relation to the review.

This declaration is in respect of 1414 Degrees Limited and the entities it controlled during the period.

Paul Gosnold Director

BDO Audit (SA) Pty Ltd

Adelaide, 26 February 2020

BDO Audit (SA) Pty Ltd ABN 33 161 379 086 is a member of a national association of independent entities which are all members of BDO (Australia) Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (SA) Pty Ltd and BDO (Australia) Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.