ADSLOT LTD. — Interim / Quarterly Report 2013

Apr 25, 2013

Appendix 4C - Quarterly report for entities admitted on the basis of commitments

Appendix 4C

Quarterly report for entities admitted

on the basis of commitments

Commentary on activities during the Quarter ending 31 March 2013

• Cash
  outflow
  for
  the
  quarter
  was
  $0.4m.
  As
  forecast
  last
  quarter
  this
  included
  the receipt
  of
  our
  financial
  year
  2012
  Research
  &
  Development
  Tax
  Incentive
  of
  $0.8m

• The
  normalised
  cash
  outflow
  for
  the
  3
  months
  to
  31
  March
  2013
  was
  therefore $1.2m ,
  lower
  than
  our
  guidance
  range
  of
  a
  $1.5M
  to
  $2.0M,
  provided
  in
  January 2013.

• Cash
  at
  bank
  as
  at
  31
  March
  2013
  is $10.5M .

• Cash
  receipts
  for
  the
  quarter
  for
  Adslot
  products
  were
  slightly
  down
  on
  the
  previous quarter,
  due
  largely
  to
  the
  timing
  of
  receipts
  from
  large
  customers.
  By
  way
  of comparison,
  from
  a
  profit
  and
  loss
  perspective,
  the
  revenue’s
  quarter
  on
  quarter were
  higher.

• Cash
  receipts
  for
  the
  Webfirm
  division
  were
  steady
  quarter-­‐on-­‐quarter.

• Costs
  were
  in
  line
  with
  management
  expectations
  albeit
  at
  the
  bottom
  end
  of
  the range
  reflecting
  a
  conservative
  management
  of
  expenditure.

• We
  anticipate
  net
  cash
  outflows
  for
  the
  remainder
  of
  the
  2013
  calendar
  year
  as
  we further
  invest
  in
  the
  sales
  and
  marketing
  of
  core
  products Adslot
  Publisher , Adslot Create and
  the
  growth
  of
  our
  North
  American
  and
  UK
  operations.

• We
  expect
  the
  underlying
  net
  operating
  cash
  outflows
  for
  the
  next
  two
  quarters
  to be
  in
  the
  vicinity
  of
  $1.3M
  to
  $1.7M
  per
  quarter.

• See chapter 19 for defined terms.

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Appendix 4C Page 1

Appendix 4C - Quarterly report for entities admitted on the basis of commitments

Appendix 4C

Quarterly report for entities admitted on the basis of commitments

Name of entity
ADSLOT LTD
ABN 70 001 287 510	Quarter ended (“current quarter”)
70 001 287 510	31 MARCH 2013

Consolidated statement of cash flows

Cash flows related to operating activities 1.1 Receipts from customers 1.2 Payments for: (a) staff costs (Note 3) (b) advertising and marketing (c) research and development (d) leased assets (e) website publisher payments (f) other cost of sales (g) other working capital/overheads 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income and Other taxes paid 1.7 Other – R&D Tax Incentive (Note 4)	Current quarter $A’000	Year to date (9 months) $A’000
	808 (1,525) (28) - (1) - (178) (397) - 136 - (4) 823	2,509 (5,120) (152) - (3) (83) (667) (1,386) - 426 - (12) 823
Net operating cash flows	(366)	(3,665)

• See chapter 19 for defined terms.

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Appendix 4C - Quarterly report for entities admitted on the basis of commitments

	Current quarter $A’000	Year to date (9 months) $A’000
1.8 Net operating cash flows (carried forward)	(366)	(3,665)
Cash flows related to investing activities 1.9 Payment for acquisition of: (a) businesses (b) equity investments (c) intellectual property (d) physical non-current assets (e) other non-current assets 1.10 Proceeds from disposal of: (a) businesses (b) equity investments (c) intellectual property (d) physical non-current assets (e) other non-current assets 1.11 Loans to other entities 1.12 Loans repaid by other entities 1.13 Other (provide details if material) Net investing cash flows 1.14 Total operating and investing cash flows	- - - - - - - - - - - - -	- - - - (11) - - - - - - -
	-	(11)
	(366)	(3,676)
Cash flows related to financing activities 1.15 Proceeds from issues of shares, options, etc. –Note 3 1.16 Proceeds from sale of forfeited shares 1.17 Proceeds from borrowings 1.18 Repayment of borrowings 1.19 Dividends paid 1.20 Other – Costs relating to issues of shares Net financing cash flows	- - - - - -	464 - - - - -
	-	464
Net increase (decrease) in cash held 1.21 Cash at beginning of quarter/year to date 1.22 Exchange rate adjustments – Note 2	(366) 10,868 (12)	(3,212) 13,746 (44)
1.23 Cash at end of quarter	10,490	10,490

• See chapter 19 for defined terms.

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Appendix 4C - Quarterly report for entities admitted on the basis of commitments

Payments to directors of the entity and associates of the directors

Payments to related entities of the entity and associates of the related entities

		Current quarter $A'000
1.24	Aggregate amount of payments to the parties included in item 1.2	90
1.25	Aggregate amount of loans to the parties included in item 1.11	-
1.26 Explanation necessary for an understanding of the transactions Directors Fees of $81k. Consultancy Fees paid to entity associated with Directors of $9k. In addition, item 1.1 includes receipts from trading with entity associated with a Director of $21k

Non-cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

N/A Details of outlays made by other entities to establish or increase their share in businesses in which the reporting entity has an interest y has an interest has an interest N/A

• 2.2 Details of outlays made by other entities to establish or increase their share in businesses in which the reporting entity has an interest y has an interest has an interest

Financing facilities available

Add notes as necessary for an understanding of the position. (See AASB 1026 paragraph 12.2).

		Amount available $A’000	Amount used $A’000
3.1	Loan facilities	-	-
3.2	Credit standby arrangements	-	-

• See chapter 19 for defined terms.

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Appendix 4C - Quarterly report for entities admitted on the basis of commitments

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A’000	Previous quarter $A’000
4.1 Cash on hand and at bank 4.2 Deposits at call 4.3 Bank overdraft 4.4 Other – Held in solicitor’s trust account	758	1,042
	9,732	9,826
	-	-
	-	-
Total: cash at end of quarter(item 1.23)	10,490	10,868

Acquisitions and disposals of business entities

5.1 Name of entity 5.2 Place of incorporation or registration 5.3 Consideration for acquisition or disposal 5.4 Total net assets 5.5 Nature of business	Acquisitions (Item 1.9(a))	Disposals (Item 1.10(a))
	N/A	N/A
	-	-
	-	-
	-	-
	-	-

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act (except to the extent that information is not required because of note 2) or other standards acceptable to ASX.

• 2 This statement does give a true and fair view of the matters disclosed.

==> picture [74 x 46] intentionally omitted <==

Sign here: ............................................................ Date: 26 April 2013 Company Secretary

Print name: Brendan Maher

• See chapter 19 for defined terms.

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Appendix 4C - Quarterly report for entities admitted on the basis of commitments

Notes

1. The definitions in, and provisions of, AASB 1026: Statement of Cash Flows apply to this report except for the paragraphs of the Standard set out below.

2. 6.2 - reconciliation of cash flows arising from operating activities to operating profit or loss

3. 9.2 - itemised disclosure relating to acquisitions

4. • 9.4 - itemised disclosure relating to disposals

5. 12.1(a) - policy for classification of cash items

6. • 12.3 - disclosure of restrictions on use of cash • 13.1 - comparative information

7. Exchange Rate Adjustment (1.22): Represents accounting adjustment related to conversion of US dollar, GB pound and Euro bank account balances to local currency.

8. Proceeds from issue of shares (1.2a & 1.15) : Includes a payment of $464k in year to date Employment Costs (1.2a) paid to the Webfirm Group Employee Share Trust who used those funds to procure new shares in the Company which is shown at 1.15. These shares are eliminated on consolidation as Treasury Shares in the accounts of the Company.

9. Other – Government grants (1.7): Represents proceeds received from the Research & Development Tax Incentive for the financial year June 2012 claim.

10. See chapter 19 for defined terms.

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