Skip to main content

AI assistant

Sign in to chat with this filing

The assistant answers questions, extracts KPIs, and summarises risk factors directly from the filing text.

DATADOT TECHNOLOGY LIMITED Interim / Quarterly Report 2018

Feb 15, 2018

64764_rns_2018-02-15_d6fe3afb-a122-4d0d-9dc9-effc290650ce.pdf

Interim / Quarterly Report

Open in viewer

Opens in your device viewer

==> picture [254 x 76] intentionally omitted <==

APPENDIX 4D Half Yearly Report for the half year ended 31 December 2017

Contents Page
Appendix 4D - Half Year Report 2
Financial Report 3

ABN : 54 091 908 726 Unit 9, 19 Rodborough Road Frenchs Forest NSW 2086 P : (02) 8977 4900 F : (02) 9975 4700 www.datadotdna.com

Half Year Report - December 2017

Page 1

DataDot Technology Limited

Appendix 4D Half Year Financial Report

DataDot Technology Limited

ABN : 54 091 908 726

Reporting period Half year ended 31 December 2017 Previous reporting period Half year ended 31 December 2016

Results for announcement to the market 31 Dec 17 31 Dec 16 Change Change
$ $ $ %
Revenue 2,490,443 2,810,758 (320,315) (11.40)%
Gross Profit 1,407,848 1,639,880 (232,032) (14.15)%
Expenses 1,704,670 2,216,768 (512,098) (23.10)%
EBITDA (86,253) (314,205) 227,952 72.55%
Loss from ordinary activities after tax attributable to members (307,983) (541,334) 233,351 43.11%
Net loss attributable to members (307,983) (541,334) 233,351 43.11%
Net tangible asset backing per ordinaryshare shown in cents 0.0028 0.0042 (0.0014) (33.33)%
Dividends
No dividends werepaid or madepayable duringthe halfyear ended or since 31 December 2017.

Commentary

Please refer to the attached Directors report which does not form part of the financial report for the half year ended 31 December 2017.

Other information

Control gained over entities having a material effect N/A

Loss of control over entities having a material effect N/A

Dividend or distribution reinvestment plans N/A Details of associates and joint venture entities N/A

Audit status

This report is based on accounts that have been subject to review.

Attachments

Additional disclosure requirements can be found in the notes to the attached half year financial report.

Signed By Gary Flowers - Chairman 16 February 2018

Half Year Report - December 2017

Page 2

DataDot Technology Limited

==> picture [255 x 78] intentionally omitted <==

Financial Report for the half year ended 31 December 2017

Contents Page
Directors' Report 4
Auditor's Independence Declaration 6
Consolidated Statement of Profit or Loss 7
Consolidated Statement of Comprehensive Income 8
Consolidated Statement of Financial Position 9
Consolidated Statement of Changes in Equity 10
Consolidated Statement of Cash Flows 11
Notes to the Financial Statements 12
Directors' Declaration 16
Independent Auditor's Review Report 17

Half Year Report - December 2017

Page 3

DataDot Technology Limited

for the half year ended 31 December 2017

Directors’ Report

Your directors submit their report, together with the financial statements of the consolidated entity (“DataDot”) consisting of DataDot Technology Limited and the entities it controlled at the end of or during the half year ended 31 December 2017.

Directors

The directors of the Company at any time during or since the end of the half-year are as follows:

Mr G Flowers (Chairman)

Mr S Wilks Mr T Hield – Appointed 24 November 2017 Mr Bruce Rathie – Retired 24 November 2017

Principal activities

The principal activities of DataDot during the year were:

  • (a) to manufacture and distribute asset identification solutions that include:

  • (i) DataDotDNA® - polymer and metallic microdots containing etched data that is unique to the assets to which the microdots are attached;

  • (ii) Asset Registers ‑ databases that record asset identification data and are accessible by law enforcement agencies and insurance investigators;

  • (b) to manufacture and distribute high security DataTraceID authentication solutions;

  • (c) to develop and distribute customised solutions combining DataDotDNA, DataTraceID and asset registration.

There has been no significant change in the nature of these activities during the half year (but see below re potential merger with Beston Technologies Pty Ltd).

Review of operations

Earnings for first half of 2017/18 have improved against the prior comparable period (pcp). EBITDA improved by $0.23m to a $0.09m loss (1H2017, $0.31m loss) and NPAT improved by $0.23m to a $0.31m loss (1H2017 $0.54m loss).

These improvements were driven by further rationalisation of the cost base, which yielded savings of $0.51m against pcp. This has increased the operating models’ sustainability and efficiency.

==> picture [511 x 154] intentionally omitted <==

----- Start of picture text -----

73%
23%
----- End of picture text -----

With a lower cost base in place, the group is now well placed to translate revenue growth into positive earnings results. Pleasingly, we have now had a positive EBITDA for 5 months in row (September 2017 – January 2018)[1] for the business since the beginning of the financial year.

1 January 2018 result unaudited DataDot Technology Limited

Half Year Report - December 2017

Page 4

for the half year ended 31 December 2017

Directors’ Report

Group revenue has fallen against pcp from $2.81m to $2.49m. Revenue growth continues to be the key imperative for the Company. To address this we have implemented a number of new initiatives, particularly to promote our authentication solutions, including:

  • Launch of a stand-along DataTraceID website (see datatraceid.com)

  • An increased focus on thought leadership and content based lead generation; for example in November we held a webinar on smart packaging and presented at a the Monash University Food Innovation Centre on Food Fraud (see http://datatraceid.com/resources/)

  • The launch of the Corporate Counsel Survey Report to benchmark industry views on counterfeit on a recurring basis

Subsequent event – possible merger with Beston Technologies Pty Ltd

As set out in our announcement of 16 February 2018 the Company has executed a Heads of Agreement for a proposed merger with Beston Technologies Pty Limited (BT). Key points of that announcement are that:

  • Merger subject to, among other things, satisfactory completion of due diligence, negotiation of definitive transaction documents, final board approvals, DDT shareholder approval and completion of a capital raising

  • DDT and BT have agreed to a period of exclusivity until 30 March 2018

  • Merger would create an Australian-owned and integrated e-commerce traceability and anti-counterfeit software-as-aservice (SaaS) solution across a range of industries

  • Proposed merger terms value BT at $13.0 million and DDT at $7.0 million with a combined enterprise value of $20.0 million

  • The Board of the merged group would comprise three Directors appointed by Beston Global Food Company (BFC), the current ultimate holding company of BT, and two of the current directors of DDT

  • A capital raising is proposed to be undertaken in conjunction with the merger to raise $12.0 million to $15.0 million

  • At this point there is no assurance that the transaction will proceed to completion as it remains subject to further due diligence investigations and other conditions.

Outlook

The outlook for the Company is positive with:

  • a significantly improved cost base meaning the group is well placed to translate revenue growth into positive earnings results

  • a number of improvements in our authentication value proposition implemented and to come, with resultant lead generation and pipeline growth expected to follow and translate into revenue

  • increasing confidence in the prospects for our authentication business’ future and the role it can play in delivering material upside to our results

  • strong volume being maintained in our microdot business, and

  • the proposed merger with Beston Technologies to be progressed in the coming half-year

Auditor’s independence declaration

The lead auditor's independence declaration in accordance with section 307C of the Corporations Act 2001 , for the half year ended 31 December 2017 has been received and can be found on page 6 of the financial report.

Signed in accordance with a resolution of the Board of Directors, pursuant to section 306(3)(a) of the Corporation Act 2001.

==> picture [104 x 58] intentionally omitted <==

G Flowers Chairman Sydney 16 February 2018

Half Year Report - December 2017

DataDot Technology Limited

Page 5

Tel: +61 2 9251 4100 Level 11, 1 Margaret St Fax: +61 2 9240 9821 Sydney NSW 2000 www.bdo.com.au Australia

==> picture [78 x 31] intentionally omitted <==

DECLARATION OF INDEPENDENCE BY GILLIAN SHEA TO THE DIRECTORS OF DATADOT TECHNOLOGY LIMITED

As lead auditor for the review of Datadot Technology Limited for the half-year ended 31 December 2017, I declare that, to the best of my knowledge and belief, there have been:

  1. No contraventions of the auditor independence requirements of the Corporations Act 2001 relation to the review; and

  2. No contraventions of any applicable code of professional conduct in relation to the review.

This declaration is in respect of Datadot Technology Limited and the entities it controlled during the period.

==> picture [129 x 41] intentionally omitted <==

Gillian Shea Partner

BDO East Coast Partnership

Sydney, 16 February 2018

BDO East Coast Partnership ABN 83 236 985 726 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO East Coast Partnership and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation, other than for the acts or omissions of financial services licensees.

Consolidated Statement of Profit or Loss

for the half year ended 31 December 2017

Notes
Revenue
Sale of goods
Service and licence fees
Royalties
Cost of sales
Gross Profit
Other income
2
Expenses
Administrative expenses
Marketing expenses
Occupancy expenses
Travel expenses
EBITDA
Depreciation, Amortisation and Impairment
Finance costs
Loss before income tax expense
Income tax expense
6
Loss after income tax expense for the period
Loss for the period attributable to :-
Owners of DataDot Technology Limited
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
31 Dec 2017
31 Dec 2016
$
$ 2,223,054
2,467,572
70,803
120,546
196,586
222,640
2,490,443
2,810,758
1,082,595
1,170,878
1,407,848
1,639,880
210,569
262,683
1,403,393
1,893,607
86,532
53,313
173,383
189,790
41,362
80,058
1,704,670
2,216,768
(86,253)
(314,205)
214,870
219,220
-
1,406
(301,123)
(534,831)
6,860
6,503
(307,983)
(541,334)
(307,983)
(541,334)
(0.04)
(0.07)
(0.04)
(0.07)

The above consolidated statement of profit or loss should be read in conjunction with the accompanying notes.

Half Year Report - December 2017

DataDot Technology Limited

Page 7

Consolidated Statement of Comprehensive Income

for the half year ended 31 December 2017

Loss after income tax expense for the period
Other comprehensive income :-
Items that may be classified subsequently to profit or loss :-
Exchange difference on translation of foreign operations
Total comprehensive income for the period net of tax
Total comprehensive income attributable to :-
Owners of DataDot Technology Limited
31 Dec 2017
31 Dec 2016
$
$ (307,983)
(541,334)
2,446
15,826
(305,537)
(525,508)
(305,537)
(525,508)

The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

Half Year Report - December 2017

Page 8

DataDot Technology Limited

Consolidated Statement of Financial Position

as at 31 December 2017

Notes
Current Assets
Cash and cash equivalents
5
Trade and other receivables
Inventories
Grant receivable
Total Current Assets
NonCurrent Assets
Plant and equipment
Intangibles
Investments
Deferred Tax
Total Non‑Current Assets
Total Assets
Current Liabilities
Trade and other payables
Employee benefits
Provisions
Other current liabilities
Total Current Liabilities
NonCurrent Liabilities
Employee benefits
Other non-current liabilities
Total Non‑Current Liabilities
Total Liabilities
Net Assets
Equity
Issued capital
7
Accumulated losses
Reserves
Total Equity
31 Dec 2017
30 Jun 2017
$
$ 1,683,383
1,768,175
889,124
939,585
652,259
737,022
100,000
320,000
3,324,766
3,764,782
414,126
466,552
2,678,972
2,730,511
120
120
33,853
33,131
3,127,071
3,230,314
6,451,837
6,995,096
776,761
985,582
88,491
127,248
60,000
60,000
168,364
216,820
1,093,616
1,389,650
27,136
23,649
365,489
403,115
392,625
426,764
1,486,241
1,816,414
4,965,596
5,178,682
39,692,526
39,664,364
(32,556,852)
(32,248,869)
(2,170,078)
(2,236,813)
4,965,596
5,178,682

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

Half Year Report - December 2017

Page 9

DataDot Technology Limited

Consolidated Statement of Changes in Equity

for the half year ended 31 December 2017

Balance at 1 July 2016
Share based payments
Share rights exercised
Balance at 31 December 2016
Balance at 1 July 2017
Share based payments
Share Issues
Share Issue Costs
Balance at 31 December 2017
Loss after income tax expense for
the period
Transactions with owners in their
capacity as owners :-
Total comprehensive income for
the period
Total comprehensive income for
the period
Transactions with owners in their
capacity as owners :-
Loss after income tax expense for
the period
Other comprehensive income for
the period, net of tax
Other comprehensive income for
the period, net of tax
Attributable to equity holders of theparent
39,584,463
(30,869,416)
(1,774,501)
163,390
(678,623)
6,425,313
-
(541,334)
-
-
-
(541,334)
-
-
15,826
-
-
15,826
-
(541,334)
15,826
-
-
(525,508)
-
-
-
54,436
-
54,436
18,000
-
-
(18,000)
-
-
39,602,463
(31,410,750)
(1,758,675)
199,826
(678,623)
5,954,241
39,664,364
(32,248,869)
(1,789,295)
231,105
(678,623)
5,178,682
-
(307,983)
-
-
-
(307,983)
-
-
2,446
-
-
2,446
-
(307,983)
2,446
-
-
(305,537)
-
-
-
64,289
-
64,289
30,000
-
-
-
-
30,000
(1,838)
-
-
-
-
(1,838)
39,692,526
(32,556,852)
(1,786,849)
295,394
(678,623)
4,965,596

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

Half Year Report - December 2017

Page 10

DataDot Technology Limited

Consolidated Statement of Cash Flows

for the half year ended 31 December 2017

Notes
Cash from operating activities
Receipts from customers (inclusive of GST)
Payments to suppliers and employees (inclusive of GST)
Interest paid
Income tax paid
Receipt of government grant
Net cash flows received from / (used in) operating activities
Cash flows from investing activities
Interest received
Purchase of plant and equipment
Payments for development costs and other intangibles
Net cash flows used in investing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial period
Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at end of period
5
31 Dec 2017
31 Dec 2016
$
$ 2,738,092
3,296,814
(3,101,761)
(3,836,820)
-
(1,406)
(7,582)
(3,454)
377,920
-
6,669
(544,866)
1,132
12,297
(10,490)
(12,266)
(95,600)
(80,773)
(104,958)
(80,742)
(98,289)
(625,608)
1,768,175
2,355,153
13,497
(50,472)
1,683,383
1,679,073

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

Half Year Report - December 2017

Page 11

DataDot Technology Limited

Notes to the Financial Statements

for the half year ended 31 December 2017

1 Summary of significant accounting policies

The financial statements cover DataDot Technology Limited as a consolidated entity consisting of DataDot Technology Limited and its subsidiaries. The financial statements are presented in Australian dollars, which is DataDot Technology's functional and presentation currency.

DataDot Technology Limited is a listed public company limited by shares, incorporated and domiciled in Australia.

A description of the nature of the consolidated entity's operations and its principal activities are included in the directors' report, which is not part of the financial statements.

The financial statements were authorised for issue, in accordance with a resolution of directors on 16 February 2018.

Basis of preparation

These interim financial statements for the interim half-year reporting period ended 31 December 2017 have been prepared in accordance with Australian Accounting Standard AASB 134 'Interim Financial Reporting' and the Corporations Act 2001, as appropriate for for-profit oriented entities. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 'Interim Financial Reporting'.

These interim financial statements do not include all the notes of the type normally included in annual financial statements. Accordingly, these financial statements are to be read in conjunction with the annual report for the year ended 30 June 2017 and any public announcements made by the Company during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

The principal accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, unless otherwise stated.

New, revised or amending Accounting Standards and Interpretations adopted

The consolidated entity has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.

Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

Half Year Report - December 2017

Page 12

DataDot Technology Limited

Notes to the Financial Statements

for the half year ended 31 December 2017

2
Other Income
Interest income
Government grant: Research and development grant *
Sundry income
31 Dec 2017
31 Dec 2016
$
$ 1,132
12,297
184,640
191,500
24,797
58,886
210,569
262,683
  • There are no unfulfilled conditions or contingencies attached to the grant.

3 Expenses

The consolidated statement of profit or loss includes the following specific expenses :-

Cost of sales
Stock obsolescence
Administrative expenses
Net (gain) / loss on foreign currency
Employee benefits
Employee share based expenses
Superannuation expenses
Depreciation
Amortisation
(4,944)
14,360
(15,866)
67,672
789,445
1,007,680
64,286
54,436
67,805
90,443
67,731
71,086
147,139
148,134
1,120,540
1,439,451

4 Fair values of financial instruments

Unless otherwise stated, carrying amounts of financial instruments reflect their fair value. The carrying amounts of trade receivables and trade payables assume to approximate their fair values due to their short term nature. The fair value of financial liabilities is estimated by discounting the remaining contractual maturities at the current market interest rate that is available for similar financial instruments.

5
Cash and cash equivalents
Reconciliation of cash
Cash at bank and on hand
Balance as per statement of cash flows
6
Income Tax
Major components of tax expense
Withholding Tax
Income tax expense
Cash at the end of the financial period shown in the consolidated statement of cash flows is reconciled
as follows
31 Dec 2017
31 Dec 2016
$
$ 1,683,383
1,679,073
1,683,383
1,679,073
31 Dec 2017
31 Dec 2016
$
$ 6,860
6,503
6,860
6,503

Half Year Report - December 2017

Page 13

DataDot Technology Limited

Notes to the Financial Statements

for the half year ended 31 December 2017

7 Equity - Contributed equity

Equity - Contributed equity
Ordinary shares
Balance 1 July 2017
Issue of Shares - Share Rights
Issue of Shares - Employee Share Issue & Loan Scheme
Balance 31 December 2017
31 Dec 2017
31 Dec 2016
31 Dec 2017
31 Dec 2016
Shares
Shares
$
$ 761,674,461
39,692,526
39,602,463
810,606,351
Date
No of Shares
$ 01-07-17
766,004,605
39,664,364
24-07-17
4,285,714
28,162
40,316,032
-
810,606,351
39,692,526
31-12-17
19-08-17

8 Segment Information

Segment descriptions

DataDot has identified its operating segments based on the internal reports that are reviewed and used by the executive management team (the chief operating decision makers) in assessing performance and in determining the allocation of resources.

Management has reviewed the segments and determined the group is organised into business units based on their product and services and accordingly has two reportable segments. Discrete financial information about each of these operating businesses is reported to the executive management team on at least a monthly basis.

Products and services by segment

Two reportable segments have been identified as follows:

DataDotDNA® ‑ polymer and metallic microdots containing etched data that is unique to the assets to which the microdots are attached.

DataTraceDNA® – a high speed, high security, machine readable system for authenticating materials, products and assets and IntelliSeed™ by AgTechnix is a frontier patent pending technology, supporting global agriculture and protecting investments in intellectual property across a diverse spectrum of agricultural activities, including seed and plant genetics.

Accounting policies and intersegment transactions

The accounting policies used by DataDot in reporting segments internally is the same as those contained in the prior period. Intersegment pricing is determined on an arm’s length basis. Intersegment transactions are eliminated on consolidation.

The following tables present the revenue, profit/(loss) before tax, assets and liabilities information regarding operating segments for half years ended 31 December 2017 and 31 December 2016.

Half Year Report - December 2017

Page 14

DataDot Technology Limited

Notes to the Financial Statements

for the half year ended 31 December 2017

8 Segment Information (continued)

Segment performance
Period ended 31 December 2017
Revenue from external customers
Total revenue
Finance revenue
Finance costs
Net loss after income tax
Segment assets
Segment liabilities
Period ended 31 December 2016
Revenue from external customers
Total revenue
Finance revenue
Finance costs
Net (loss) / profit after income tax
Segment assets
Segment liabilities
Intersegment revenue
Intersegment revenue
Depreciation, amortisation and disposals
Depreciation, amortisation and disposals
DataDot
DataTraceDNA
Eliminations
Total
$
$
$
$
2,180,742
309,701
-
2,490,443
208,824
7,171
(215,995)
-
2,389,566
316,872
(215,995)
2,490,443
(104,043)
(110,827)
-
(214,870)
1,132
-
-
1,132
-
-
-
-
(222,479)
(85,504)
-
(307,983)
6,852,067
736,122
(1,136,352)
6,451,837
1,485,139
2,402,162
(2,401,060)
1,486,241
DataDot
DataTraceDNA
Eliminations
Total
$ $ $ $
2,100,572
710,186
-
2,810,758
96,130
5,582
(101,712)
-
2,196,702
715,768
(101,712)
2,810,758
(104,171)
(115,049)
-
(219,220)
12,297
-
-
12,297
(1,406)
-
-
(1,406)
(720,756)
179,422
-
(541,334)
7,116,394
1,310,883
(1,136,352)
7,290,925
1,357,018
2,550,424
(2,570,758)
1,336,684

9 Events after the reporting period

The company has executed to a Heads of Agreement for a proposed merger with Beston Technologies Pty Ltd. This is subject to completion of due diligence, board and shareholder approval and completion of capital raising.

Half Year Report - December 2017

Page 15

DataDot Technology Limited

Directors’ Declaration

In the directors’ opinion:

  • (a) the attached financial statements and notes thereto comply with the Corporations Act 2001, Australia Accounting Standard AASB 134 “Interim Financial Reporting”, the Corporations Regulations 2001 and other mandatory professional reporting requirements;

  • (b) the attached financial statements and notes thereto give a true and fair view of the consolidated entity’s financial position as at 31 December 2017 and of its performance for the financial half-year ended on that date; and

  • (c) there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of the directors made pursuant to section 303(5) of the Corporations Act 2001.

On behalf of the Board

==> picture [104 x 59] intentionally omitted <==

G Flowers Chairman 16 February 2018

Half Year Report - December 2017

Page 16

DataDot Technology Limited

Tel: +61 2 9251 4100 Level 11, 1 Margaret St Fax: +61 2 9240 9821 Sydney NSW 2000 www.bdo.com.au Australia

==> picture [78 x 31] intentionally omitted <==

INDEPENDENT AUDITOR’S REVIEW REPORT

To the members of Datadot Technology Limited

Report on the Half-Year Financial Report

Conclusion

We have reviewed the half-year financial report of Datadot Technology Limited and its subsidiaries, which comprises the consolidated statement of financial position as at 31 December 2017, the consolidated statement of profit or loss, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the halfyear then ended, and notes comprising a statement of accounting policies and other explanatory information, and the directors’ declaration.

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of the Group is not in accordance with the Corporations Act 2001 including:

  • (i) Giving a true and fair view of the Group’s financial position as at 31 December 2017 and of its financial performance for the half-year ended on that date; and

  • (ii) Complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

Directors’ responsibility for the Half-Year Financial Report

The directors of the company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the Group’s financial position as at 31 December 2017 and its financial performance for the half-year ended on that date and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . As the auditor of the Group, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is

BDO East Coast Partnership ABN 83 236 985 726 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO East Coast Partnership and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation, other than for the acts or omissions of financial services licensees.

==> picture [78 x 31] intentionally omitted <==

substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 . We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of Datadot Technology Limited, would be in the same terms if given to the directors as at the time of this auditor’s review report.

BDO East Coast Partnership

==> picture [123 x 86] intentionally omitted <==

Gillian Shea Partner

Sydney, 16 February 2018

2