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 December 2013

**Operational

Update**

On
22
October
2013, Adslot
Marketplace was
launched,
allowing
large
media
buyers
to
purchase premium
advertising
inventory
directly
from
a
selection
of
Adslot’s
premium
publisher
clients.
Although
significant
trades
have
already
been
captured
via
the Adslot
Marketplace ,
the
Company maintains
previous
guidance
that
it
expects
it
will
take
two
quarters
to
drive
meaningful
agency adoption.
The Adslot
Marketplace is
now
being
actively
marketed
to
media
agencies
throughout the
world.
The
company
continues
to
sign
large,
premium
publishers
in
the
United
States,
Europe
and
the Asia
Pacific
region,
including
multi-‐market
contracts
with
some
of
the
world’s
largest
publishing groups
such
as
Mail
Online
(Daily
Mail),
BBC,
ESPN
and
IDG.
The
depth
and
diversity
of
premium
inventory
available
via
Adslot
continues
to
grow,
with
the signing
of
additional
premium
publishers.
New
publishers
signed
in
the
December
quarter represent
over
2
billion
page
impressions
per
month,
and
include
the
likes
of
MorningStar,
Metro (UK),
BBC
(UK),
news.net,
Al
Jazeera
USA,
Zoopla,
Property
Pal
and
Diversity
Advertising.

**Facilitate

Acquisition**

On
23
December
2013,
the
acquisition
of
Facilitate
Digital
Holdings
Ltd
via
scheme
of
arrangement was
completed.
Facilitate
Digital
is
now
a
wholly
owned
subsidiary
of
Adslot
Limited.
Integration
of
the
two
organisations
has
commenced,
including: o the
merging
of
teams
under
a
single
organisational
structure o integration
of
the Adslot and Symphony products
Integration
of
the Symphony and Adslot products
throughout
2014
will
allow
large
agency
buyers who
are
collectively
spending
over
$1
Billion
per
annum
via
the Symphony platform,
to
access Adslot publisher
inventory
via
the
same
product.
Through
calendar
year
2014,
online
advertising
spend
executed
via Symphony is
expected
to increase
to
nearly
$2
Billion
per
annum.
This
is
due
to:
the
recent
signing
of Omnicom -‐
world’s
second
largest
media
agency
group
-‐
to
a
multi-‐ market Symphony contract
(as
announced
on
19
December
2013);
and
scheduled
new
market
deployments
under
existing Symphony contracts.

See
chapter
19
for
defined
terms.

Appendix
4C
Page
1

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

**Cash

Position**

Cash
for
the
quarter
increased
by
$795k
to
$8.33million.
Receipts
from
customers
for
the
quarter
were
$912k
up
from
$865k
from
the
prior
quarter.
Costs
were
at
the
low-‐end
of
guidance,
and
included
staff
costs
of
a
one-‐off
non-‐recurring payment
of
$719k
to
the
Adslot
Employee
Share
Trust,
with
funds
used
to
procure
new
shares
in the
Company.
It
was
therefore
cash
neutral
to
the
Company
(see
Note
3,
and
refer
to
items
1.2 and
1.15).
The
result
for
the
quarter
was
driven
by
a
number
of
one-‐off
inflows
and
outflows
being: o Cash
at
bank
of
$496k
acquired
as
a
result
of
the
Facilitate
Scheme
of
Arrangement; o Receipt
of
Adslot
Research
&
Development
incentives
of
$1,060k
relating
to
FY2013; o Receipt
of
Facilitate
Research
&
Development
incentives
of
$1,105k
relating
to
FY2013;
and o Payment
of
$405k
in
costs
relating
to
the
acquisition
of
Facilitate.
The
normalised
operating
result
for
the
quarter
(excluding
the
four
one-‐offs
listed
above)
was
a cash
outflow
of
$1,461k
(including
8
days
contribution
from
Facilitate),
which
was
beneath
the
low end
of
our
guidance
range
of
an
outflow
of
between
$1.6M
and
$1.8M.
$532k
in
annualised
cost
synergies
have
already
been
realised
from
the
Facilitate
acquisition.
We
anticipate
underlying
net
cash
outflows
to
continue
for
the
next
few
quarters.
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
2

24/10/2005

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 DECEMBER 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 (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 (6 months) $A’000
	912 (2,065) (122) (247) (1) (10) (236) (934) - 124 - (4) 2,164	1,777 (3,610) (255) (635) (2) (17) (431) (1,417) - 228 - (8) 2,164
Net operating cash flows	(419)	(2,206)

See
chapter
19
for
defined
terms.

Appendix
4C
Page
3

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

Appendix 4C - Quarterly report for entities admitted on the basis of commitments
	Current quarter $A’000	Year to date (6 months) $A’000
1.8 Net operating cash flows (carried forward)	(419)	(2,206)
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	- - - - (1) - - - - - - - 496	- - - - (6) - - - - 1 - - 496
	495	491
	76	(1,715)
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	719 - - - - -	945 - - - - -
	719	945
Net increase (decrease) in cash held 1.21 Cash at beginning of quarter/year to date 1.22 Exchange rate adjustments – Note 2	795 7,544 (6)	(770) 9,132 (29)
1.23 Cash at end of quarter	8,333	8,333

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

**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	58
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 $58k. In addition, item 1.1 includes receipts from trading with entities associated with Directors of $30k

**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
5

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	2,073	457
	6,260	7,087
	-	-
	-	-
Total: cash at end of quarter(item 1.23)	8,333	7,544

**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))
	Faciltate Digital Holdings Limited	N/A
	Australia	-
	Nil cash, but 273,730,778 new shares in AdslotLtdwereissued	-
	Approximately $4.9M subject to the finalisation of the valuation of intangible assets and audit of the completion accounts	-
	Digital workflow and trading technology for media agencies	-

**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 47] intentionally omitted <==

Sign
here: ............................................................
Date:
31
January
2014 Company
Secretary

Print
name: Brendan
Maher

See
chapter
19
for
defined
terms.

Appendix
4C
Page
6

24/10/2005

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

Notes

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.
- 6.2 -‐
  reconciliation
  of
  cash
  flows
  arising
  from
  operating
  activities
  to operating
  profit
  or
  loss
- 9.2 -‐
  itemised
  disclosure
  relating
  to
  acquisitions
- 9.4 -‐
  itemised
  disclosure
  relating
  to
  disposals
12.1(a)
-‐
policy
for
classification
of
cash
items
• 12.3 -‐
disclosure
of
restrictions
on
use
of
cash
• 13.1 -‐
comparative
information
Exchange
Rate
Adjustment
(1.22): Represents
accounting
adjustment
related
to conversion
of
US
dollar,
GB
pound
and
Euro
bank
account
balances
to
local
currency.
Proceeds
from
issue
of
shares
(1.2a
&
1.15) :
Includes
a
payment
of
$
718.7k
during current
quarter
($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.

Research
&
Development
(1.2c): Represents
direct
payroll
and
on-‐costs
related
to on-‐going
technology
development
work
compliant
with
R&D
Grant
regulations.
Other
-‐
Investing
Activities
(refer
1.13
above ).
This
amount
relates
to
bank
balances of
acquired
entities.

See
chapter
19
for
defined
terms.

Appendix
4C
Page
7

AI assistant

ADSLOT LTD. Interim / Quarterly Report 2014

64306_rns_2014-01-30_f3ca738e-7a71-43e1-bd3c-9fa9fb78f5b9.pdf

Appendix 4C