ADSLOT LTD. — Interim / Quarterly Report 2015

Jan 20, 2016

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

Appendix 4C - Quarterly report

Commentary for the quarter ending 31 December 2015

Cash
receipts
from
customers
for
the
December
quarter
were
$3.345
million,
an
increase
of
28%
or $0.741
million
versus
the
September
quarter,
and
a
fifth
consecutive
quarter
of
growth
in
cash receipts.

As
previously
communicated
via
our
Trading
Updates
and
our
Quarterly
cashflow
reports,
cash receipts
growth
trails
Trading
Technology
revenue
growth,
with
larger
agency
clients
billed
only when
the
campaign
activity
they
purchase
commences,
and
monthly
in
arrears.
Cash
receipts
are therefore
geared
to
the
timing
of
payments
from
larger
agency
customers.

The
28%
increase
in
cash
receipts
reflects
recent
growth
in
Trading
Technologies
revenues.

Net
operating
cash
flows
showed
an outflow of
$0.75
million
for
the
December
quarter
compared
to an inflow of
$0.21
million
for
the
September
quarter
(the
September
quarter
included
receipt
of
the annual
R&D
Tax
Incentive
payment
for
the
FY2015
year
of
$2.18
million).
Excluding
the
R&D
Tax Incentive
receipt,
net
cash outflow for
the
September
quarter
would
have
been
$1.98
million, making
the
December
quarter
net
cash
outflow
of
$0.75
million
an
improvement
of
$1.23
million,
or 62%.

The
reduction
in
underlying
cash
outflows
from
$1.98
million
to
$0.75
million
is
primarily
due
to increased
Trading
Technology
revenues
but
also
reflects
lower
than
expected
Publisher
payments
in the
December
quarter.

The
seasonal
softening
of
media
buying
in
the
March
quarter
combined
with
an
expected
increase
in Publisher
payments
means
the
Company
expects
net
cash outflows will
moderately
increase
in
the next
quarter
(March
2016)
but
then
continue
to
reduce
in
future
quarters,
as
Trading
Technology revenues
continue
to
grow
and
operating
costs
remain
flat.

Cash
at
the
end
of
the
December
2015
quarter
was
$3.84
million.

• 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 Quarter
ended
(“current
quarter”) 70
001
287
510 31
December
2015

**Consolidated

statement
of
cash
flows**

Cash flows related to operating activities 1.1 Receipts from customers 1.2 Payments for: (a) staff costs (b) advertising and marketing (c) research and development (Note 3) (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 received / (paid) 1.7 Other – R&D Tax Incentive	Current quarter $A’000	Year to date (6 months) $A’000
	3,345 (1,776) (22) (912) (1) (540) (276) (625) - 17 0 0 40	5,949 (3,661) (27) (1,856) (2) (1,361) (503) (1,365) - 49 0 9 2,225
Net operating cash flows	(750)	(543)

• 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 (6 months) $A’000
1.8 Net operating cash flows (carried forward)	(750)	(543)
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	- - - - (27) - - - - - - - -	- - - - (52) - - - - - - - -
	(27)	(52)
	(777)	(595)
Cash flows related to financing activities 1.15 Proceeds from issues of shares, options, etc. 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	- - - - - -	- - - - - -
	-	-
Net increase (decrease) in cash held 1.21 Cash at beginning of quarter/year to date 1.22 Exchange rate adjustments – Note 2	(777) 4,650 (38)	(595) 4,441 (11)
1.23 Cash at end of quarter	3,835	3,835

• 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**

		Current quarter $A'000
1.24	Aggregate amount of payments to the parties included in item 1.2	72
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 $72k.

**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
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	1,663	1,096
	2,172	3,554
	-	-
	-	-
Total: cash at end of quarter(item 1.23)	3,835	4,650

**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 47] intentionally omitted <==

Sign
here: ............................................................
Date:
21
January
2016 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.

4. • 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

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,
   NZ
   dollar,
   GB
   pound
   and
   Euro
   bank
   account
   balances
   to
   local currency.

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

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

24/10/2005