ADSLOT LTD. — Interim / Quarterly Report 2014

Apr 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 31 March 2014

Receipts
from
customers
for
the
quarter
were
$1,395k
up
from
$912k
from
the
prior
quarter.

This quarter
includes
a
full
3
months
of
receipts
from
the
Facilitate
acquisition.
In
this
quarter
Facilitate contributed
$433k
compared
to
$45k
in
the
previous
quarter.

Cash
for
the
quarter
decreased
by
$3.32
million
to
$4.98
million,
driven
largely
by
one-­‐off non-­‐recurring outflows not
representative
of
expected
outflows
for
future
quarters.
These
include:

• Acquisition
  costs
  of
  $583k
  as
  a
  result
  of
  the
  Facilitate
  Scheme
  of
  Arrangement,
  these
  appear in
  Net
  operating
  cash
  flows;

• Costs
  relating
  to
  the
  issue
  of
  shares
  of
  $36k
  as
  a
  result
  of
  the
  Facilitate
  Scheme
  of Arrangement,
  these
  appear
  in
  Net
  financing
  cash
  flows;

• Costs
  of
  the
  acquired
  Facilitate
  business
  representing
  old
  outstanding
  creditors
  and
  suppliers for
  amounts
  owing
  from
  periods
  ranging
  from
  April
  2013
  to
  November
  2013
  of
  $484k.
  These amounts
  were
  identified
  during
  due
  diligence
  and
  have
  been
  effectively
  funded
  by
  the
  $496k of
  cash
  acquired
  from
  the
  acquisition
  (as
  reported
  in
  the
  December
  Appendix
  4C);

• The
  $484k
  of
  old
  outstanding
  payables
  are
  shown
  in
  Net
  operating
  cashflows
  together
  with additional
  amounts
  to
  those
  suppliers
  that
  relate
  to
  the
  March
  2014
  quarter.

The
normalised
operating
result
for
the
quarter
(excluding
those
one-­‐offs
listed
above)
was
a
cash outflow
of
$2,217k.

The
normalised
cash
out
flow
of
$2,217k
does
not
take
into
account:

• An
  expected
  cash
  inflow
  in
  December
  2014
  of
  between
  $2.0
  to
  $2.2
  million
  relating
  to Research
  &
  Development
  incentives;

• Collection
  of
  outstanding
  aged
  debtors
  from
  the
  acquired
  Facilitate
  business.
  We
  expect between
  $300k
  and
  $600k
  should
  be
  able
  to
  be
  collected
  during
  the
  next
  quarter
  over
  and above
  normal
  trading
  debtor
  collections;

• Annualised
  cost
  synergies
  of
  $1.2
  million
  have
  now
  been
  realised
  (up
  from
  $532k
  last quarter).
  Approximately
  half
  of
  these
  new
  synergies
  take
  effect
  from
  1
  April
  with
  the
  balance taking
  effect
  from
  1
  May
  this
  year.

As
previously
stated,
we
anticipate
underlying
net
cash
outflows
to
continue,
albeit
at
lower
levels,
for the
next
few
quarters.
In
addition
to
the
impact
of
the
above,
significant
positive
change
in
cashflows
will largely
be
determined
by
the
speed,
extent
and
magnitude
of
agency
adoption
of
the Adslot
Marketplace in
2014
and
beyond.

• 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	31 March 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	Current quarter $A’000	Year to date (9 months) $A’000
	1,395 (1,595) (74) (871) - (72) (213) (1,912) - 58 - - -	3,172 (5,205) (329) (1,506) (2) (89) (644) (3,326) - 286 - (8) 2,164
Net operating cash flows	(3,284)	(5,487)

• 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 (9 months) $A’000
1.8 Net operating cash flows (carried forward)	(3,284)	(5,487)
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
	(3,284)	(4,996)
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	- - - - - (36)	945 - - - - (39)
	(36)	906
Net increase (decrease) in cash held 1.21 Cash at beginning of quarter/year to date 1.22 Exchange rate adjustments – Note 2	(3,320) 8,333 (31)	(4,090) 9,132 (60)
1.23 Cash at end of quarter	4,982	4,982

• 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	68
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 $68k. In addition, item 1.1 includes receipts from trading with entities associated with Directors of $11k

**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	1,582	2,073
	3,400	6,260
	-	-
	-	-
Total: cash at end of quarter(item 1.23)	4,982	8,333

**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
  April
  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