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CODEIFAI LIMITED Regulatory Filings 2020

Dec 22, 2020

64630_rns_2020-12-22_f0f7eeaf-659d-47f3-9b7e-dd23dacafea3.pdf

Regulatory Filings

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ASX ANNOUNCEMENT

ASX:YPB | 23 December 2020

CONNECT 2 announcement update

YPB Group Limited (“YPB” or the “Company”) refers to the announcement dated 21 December 2020 (“Announcement”) and provides an update to the same.

CONNECT

In respect to the increase in scope under its existing agreements, the Company is of the view that the revenue expected to be generated as a result of the increase in scope under these agreements is not material at this time, but the milestone of increasing the contracted scope of 11 additional SKUs is significant. Based on the continued tangible achievements of retaining and increasing coverage of client SKUs, the Company believes that it will be able to keep growing the range of existing client product offerings as well as continue to attract new opportunities. This is despite delays which may be caused by “lockdowns” which could impede implementation timelines.

The Company wishes to take this opportunity to provide further background in respect to its proprietary CONNECT product authentication and customer engagement SaaS platform (“CONNECT”) including the supply of CONNECT QR codes for SKUs, and why the Company believes in its long-term prospects:

  1. Validated – YPB has tested, implemented and validated CONNECT with loyal customers who continue to show uptake of the Company’s products.

  2. Scalable – CONNECT 2 has reduced the costs of implementing the solution and YPB has issued around 175 million codes through the CONNECT platform.

  3. Engagement focus – YPB’s CONNECT codes facilitate engagement between brands and their consumers. YPB believes that authenticity triggers engagement and the expanded use of the solution is testament to that belief. The milestone of adding new SKUs from existing customers impacts the Company’s revenue generating potential irrespective of how many SKUs are being covered and each SKU’s potential to increase revenue is not able to be accurately determined until the codes have been implemented which involves printing on the product and subsequent activation.

Contact Tracing

As advised in the Announcement, the Company has adapted CONNECT to offer an innovative contact tracing solution of potential interest to, amongst others, the Health and Government authorities in Australia. As all state and federal government agencies in Australia have disparate QR code systems in place, the Company sees an opportunity for the CONNECT architecture, which was originally designed as a global system, to address certain existent issues (refer to figure 1 of this announcement). At this time this remains a target market for the Company and further updates will be provided subject to developments in this respect.

[email protected]

YPB Group Limited Suite 1, 295 Rokeby Road Subiaco, Western Australia 6008, AUSTRALIA

ypb.io

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Figure 1: contact tracing using the YPB CONNECT platform

This announcement has been authorised by the Board of YPB Group Limited.

For further information please contact:

Investor enquiries [email protected]

[email protected]

YPB Group Limited Suite 1, 295 Rokeby Road Subiaco, Western Australia 6008, AUSTRALIA

ypb.io