AURORA LABS LIMITED — Interim / Quarterly Report 2017

Jan 30, 2017

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ASX ANNOUNCEMENT

31 January 2017

Aurora Labs Limited - 4C filing for Q2 FY2017

Aurora Labs Limited (“the Company”) (ASX:A3D), an industrial technology and innovation company that specialises in the development of 3D metal printers, powders, digital parts and their associated intellectual property has today released its quarterly Appendix 4C filing for Q2 FY2017 (refer attached).

First production S-Titanium delivered

In December 2016, Aurora delivered the first production printer from the S-Titanium range to an ex-Kickstarter purchaser.

CE Mark and FDA-CDRH

The CE Mechanical and EMC Technical files were completed and are being evaluated. Aurora’s application for CE Mark is currently pending approval. Upon receipt of CE Mark, Aurora will be able to ship printers to countries in the European Union.

SFP (S-Titanium range) Beta Testing Complete

Completion of the Beta process in December allowed us to move to full production of the S-Titanium range of 3D Metal printers. Aurora currently has 18 printers in production to the current design. Shipping of further units will be ongoing as they complete in-house QA/QC and print checks.

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MFP/LFP

The MFP/LFP printer is closely following its intended development trajectory. The sub-systems have now been assembled into a single, proof of concept, machine which is now being prepared for a whole system test that is expected to take place between January and February 2017.

R&D Acceleration

Aurora are anticipating the successful completion of testing of the MFP/LFP Prototype which has triggered the implementation of the next phase of design and development. Appropriate staff and equipment are being sourced to carry out this work.

www.auroralabs3d.com

AURORA LABS LTD Principal Address 12A Ambitious Link, Bibra Lake WA 6163 Postal Address PO Box 1531, Bibra Lake DC, WA 6965 Telephone +61 8 9434 1934 Email enquiries@auroralabs3d.com ACN 601 164 505 ASX Code A3D

Patent Applications

Continuing the pattern of innovation and intellectual property protection, Aurora has applied for 1 additional patent in Australia and 2 additional patents under the Patent Cooperation Treaty (PCT) over the past year.

Tradeshows and Conferences

Aurora attended the Formnext 3D printing tradeshow and conference in Frankfurt Germany to gather information on competitors, source components and enter discussions with powder manufacturers. This has resulted in ongoing negotiations for a number of useful technologies or consumables that will be utilised in our printers or marketed as accessories or optional equipment.

Strategic alliances and commercial ventures

Aurora is currently negotiating the terms of several key distributorships with potential distributors in Germany, Scandinavia and India. Distributors are to provide factory trained and approved service personnel for supporting and servicing Aurora’s products. The first trainee will be trained at Aurora’s factory in February 2017. The top tier distributors will also be required to keep minimum stock levels that will be negotiated based on the region they will service.

Since the end of the period Aurora are pleased to have announced the signing of the non-binding Term Sheet with WorleyParsons Services Pty Ltd (WorleyParsons), through their business unit Advisian, WorleyParsons’ global advisory and consulting business. The main areas to be negotiated are outlined in our ASX announcement dated 20 January 2017 titled “Non-Binding Term Sheet for Proposed Commercial Venture”.

Corporate

The Company held its annual general meeting (AGM) on 28th of November at the Company’s registered office and all resolutions were passed.

Since the end of the quarter, the Company has reviewed the remuneration of its Managing Director, Mr. David Budge, and has accordingly increased his salary component from $160,000 to $250,000 per annum effective 10 January 2017

Financials

The Company had $1.25 million cash at bank as at 31 December 2016. For more detail refer to the attached appendix 4C filing for Q2 FY2017.

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Managing Director, David Budge
with S-Titanium Pro
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Forward Looking Statements

www.auroralabs3d.com

AURORA LABS LTD Principal Address 12A Ambitious Link, Bibra Lake WA 6163 Postal Address PO Box 1531, Bibra Lake DC, WA 6965 Telephone +61 8 9434 1934 Email enquiries@auroralabs3d.com ACN 601 164 505 ASX Code A3D

This announcement contains forward-looking statements which incorporate an element of uncertainty or risk, such as ‘intends’, ‘may’, ‘could’, ‘believes’, ‘estimates’, ‘targets’ or ‘expects’. These statements are based on an evaluation of current economic and operating conditions, as well as assumptions regarding future events. These events are, as at the date of this announcement, expected to take place, but there cannot be any guarantee that such events will occur as anticipated or at all given that many of the events are outside Aurora’s control.

Accordingly, Aurora and the directors cannot and do not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained in this announcement will actually occur.

For further information please contact:

enquiries@auroralabs3D.com

ABOUT AURORA LABS

Aurora Labs is an Australian based company an industrial technology and innovation company that specialises in the development of 3D metal printers, powders, digital parts and their associated intellectual property. Aurora has primarily focused on developing innovative 3D metal printing technology to address gaps in the current market for 3D metal printers. By focusing on development of the intellectual property related to these technologies it is seeking to meet the markets current and future needs.

Aurora Labs is listed on the Australian Securities Exchange (ASX:A3D).

To learn more about Aurora Labs please visit: www.auroralabs3d.com

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www.auroralabs3d.com

AURORA LABS LTD

Principal Address 12A Ambitious Link, Bibra Lake WA 6163 Postal Address PO Box 1531, Bibra Lake DC, WA 6965 Telephone +61 8 9434 1934 Email enquiries@auroralabs3d.com ACN 601 164 505 ASX Code A3D

Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B

Introduced 31/03/00 Amended 30/09/01, 24/10/05, 17/12/10, 01/09/16

Name of entity

Aurora Labs Limited (ASX:A3D)

ABN

Quarter ended (“current quarter”)

44 601 164 505 31 December 2016

Consolidated statement of cash flows	Current quarter $A’000	Year to date 6 months $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) research and development * (Medium and Large Format Printer (MFP and LFP)) (b) product manufacturing and operating costs (Small Format Printer (SFP)) (c) advertising and marketing (d) leased assets (e) staff costs (f) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Government grants and tax incentives 1.8 Other (Net GST) 1.9 Net cash from / (used in) operating activities	- (47) (214) (19) - (353) (153) - 1 - - - 12	- (64) (409) (41) - (582) (325) - 6 - - - (17)
	(773)	(1,432)

*Note: Not inclusive of allocation for staff, administration and corporate costs.

• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Current quarter $A’000	Year to date 6 months $A’000
2. Cash flows from investing activities 2.1 Payments to acquire: (a) property, plant and equipment (b) businesses (see item 10) (c) investments (d) intellectual property (e) other non-current assets 2.2 Proceeds from disposal of: (a) property, plant and equipment (b) businesses (see item 10) (c) investments (d) intellectual property (e) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) 2.6 Net cash from / (used in) investing activities	(116) - - (30) - - - - - - - - -	(142) - - (49) - - - - - - - - -
	(146)	(191)
3. Cash flows from financing activities 3.1 Proceeds from issues of shares 3.2 Proceeds from issue of convertible notes 3.3 Proceeds from exercise of share options 3.4 Transaction costs related to issues of shares, convertible notes or options 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities	- - - (2) - - - - -	745 - - (224) - - - - -
	(2)	521

• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Current quarter $A’000	Year to date 6 months $A’000
4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of quarter/year to date 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above) 4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of quarter	2,172 (773) (146) (2) (1)	2,353 (1,432) (191) 521 (1)
	1,250	1,250
5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (Cash on Hand) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	1,249 - - 1	2,172 - - -
	1,250	2,172
6. Payments to directors of the entity and their associates Current quarter $A'000 6.1 Aggregate amount of payments to these parties included in item 1.2 120 6.2 Aggregate amount of cash flow from loans to these parties included in item 2.3 - 6.3 Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2
		Current quarter $A'000
		120
		-
Item 6.1 includes salaries and directors fees paid to directors.

• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

7. Payments to related entities of the entity and their associates 7.1 Aggregate amount of payments to these parties included in item 1.2 7.2 Aggregate amount of cash flow from loans to these parties included in item 2.3	Current quarter $A'000
	-
	-

7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

8. Financing facilities available Add notes as necessary for an understanding of the position Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 8.1 Loan facilities Nil Nil 8.2 Credit standby arrangements (Credit Card) (10) - 8.3 Other (please specify) - - 8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
	Nil	Nil
	(10)	-
	-	-

9. Estimated cash outflows for next quarter	$A’000
9.1 Research and development 9.2 Product manufacturing and operating costs 9.3 Advertising and marketing 9.4 Leased assets 9.5 Staff costs 9.6 Administration and corporate costs 9.7 Other 9.8 Total estimated cash outflows	(120) (150) (75) - (450) (85) (0)
	880

• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

10. Acquisitions and disposals of business entities (items 2.1(b) and 2.2(b) above)	Acquisitions	Disposals
10.1 Name of entity	-	-
10.2 Place of incorporation or registration	-	-
10.3 Consideration for acquisition or disposal	-	-
10.4 Total net assets	-	-
10.5 Nature of business	-	-

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

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

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Sign here: .......................................... Company Secretary

Date: 31 January 2017

Print name: Mathew Whyte

Notes

1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. See chapter 19 for defined terms 1 September 2016

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