ADSLOT LTD. — Interim / Quarterly Report 2014

Jul 29, 2014

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 30 June 2014

As
forecast,
cash
receipts
for
the
June
quarter
increased
$0.30
million
(22%)
on
the
prior
quarter
to $1.70
million
due
to:

• An
  increase
  in
  Trading
  Technology
  revenue;
  and

• Collection
  of
  outstanding
  aged
  debtors
  from
  the
  acquired
  Facilitate
  business.

Cash
outflows
for
the
quarter
decreased
from
$3.28
million
in
the
previous
quarter
to
$1.62
million for
the
June
quarter.

On
a
normalized
basis
(which
excludes
collection
of
outstanding
aged
debtors
from
the
acquired Facilitate
business
and
the
receipt
of
an
annual
export
market
development
government
grant),
the underlying
cash
burn
for
the
quarter
decreased
by
14%
from
$2.2
million
to
$1.9
million.

Cash
at
the
end
of
the
quarter
was
$3.35
million.
However,
this
does
not
include
an
additional
$6.5 million
raised
via
a
share
placement
announced
on
3
July
2014,
which
will
be
included
in
the Company’s
next
4C.
The
capital
raising
was
to:

• Accelerate
  the
  development
  and
  integration
  of
  the
  Adslot
  and
  Symphony
  platforms;

• Strengthen
  the
  balance
  sheet;
  and

• Provide
  additional
  working
  capital.

Whilst
we
have
seen
real
increases
in
campaign
bookings
over
the
Adslot
platform
(especially
in
June and
early
July),
these
emanate
largely
from
Advertising
Agencies
who
do
not
pay
upfront,
and
as such
we
will
start
to
see
the
benefit
of
these
bookings
in
terms
of
cash-­‐flow
in
the
coming
quarters.

The
Company
anticipates
a
further
reduction
in
underlying
quarterly
net
cash
outflows,
the
quantum and
timing
of
which
will
largely
be
determined
by
the
speed
and
magnitude
of
agency
adoption
of the Adslot
Marketplace ,
and
also
by
the
speed
and
adoption
of
the integrated
Adslot
and Symphony
platforms ,
the
first
version
of
which
will
be
released
in
July
2014.

As
previously
advised
the
Company
also
expects
to
receive
a
cash
benefit
of
between
$2.0
and
$2.2 million
in
December
2014
relating
to
Research
&
Development
incentives.

• See
  chapter
  19
  for
  defined
  terms.

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	30 June 2014

**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 (Note 4) (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 – Government grant	Current quarter $A’000	Year to date (12 months) $A’000
	1,698 (1,462) - (801) - (6) (394) (831) - 52 - (5) - 134	4,870 (6,667) (329) (2,307) (2) (95) (1,038) (4,157) - 338 - (13) 2,164 134
Net operating cash flows	(1,615)	(7,102)

• See
  chapter
  19
  for
  defined
  terms. Appendix
  4C
  Page
  2

24/10/2005

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

	Current quarter $A’000	Year to date (12 months) $A’000
1.8 Net operating cash flows (carried forward)	(1,615)	(7,102)
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) – Note 5 Net investing cash flows 1.14 Total operating and investing cash flows	- - - - - - - - - - - - -	- - - - (6) - - - - 1 - - 496
	-	491
	(1,615)	(6,611)
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	- - - - - -	945 - - - - (39)
	-	906
Net increase (decrease) in cash held 1.21 Cash at beginning of quarter/year to date 1.22 Exchange rate adjustments – Note 2	(1,615) 4,982 (13)	(5,705) 9,132 (73)
1.23 Cash at end of quarter	3,354	3,354

• See
  chapter
  19
  for
  defined
  terms.

Appendix
4C
Page
3

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**

entities	entities
		Current quarter $A'000
1.24	Aggregate amount of payments to the parties included in item 1.2	74
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 $74k. In addition, item 1.1 includes receipts from trading with entities associated with Directors of $5k

**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

• 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

N/A

**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. Appendix
  4C
  Page
  4

24/10/2005

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 inthe accountsis asfollows.	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	1,128	1,582
	2,226	3,400
	-	-
	-	-
Total: cash at end of quarter(item 1.23)	3,354	4,982

**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:
  30
  July
  2014 Company
  Secretary

Print
name: Brendan
Maher

• See
  chapter
  19
  for
  defined
  terms.

Appendix
4C
Page
5

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

4. • 9.2 -­‐
     itemised
     disclosure
     relating
     to
     acquisitions

   • 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

7. • 13.1 -­‐
   comparative
   information

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

9. Proceeds
   from
   issue
   of
   shares
   (1.2a
   &
   1.15) :
   Includes
   a
   payment
   of
   $944.7k
   in
   year
   to date
   Employment
   Costs
   (1.2a)
   paid
   to
   the
   Adslot
   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.

10. Research
    &
    Development
    (1.2c): Represents
    direct
    payroll
    and
    on-­‐costs
    related
    to on-­‐going
    technology
    development
    work
    compliant
    with
    R&D
    Grant
    regulations.

11. Other
    -­‐
    Investing
    Activities
    (refer
    1.13
    above ).
    This
    amount
    relates
    to
    bank
    balances of
    acquired
    entities.

12. See
    chapter
    19
    for
    defined
    terms. Appendix
    4C
    Page
    6

24/10/2005