DATADOT TECHNOLOGY LIMITED — Interim / Quarterly Report 2020

Oct 29, 2020

30 October 2020

ASX Announcement

ASX Appendix 4C

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DataDot Technology Limited (ASX:DDT) has today released its cash flow report (ASX Appendix 4C) for the quarter ending 30 September 2020.

This cash flow report is unaudited and discloses the inflows and outflows of cash during the quarter ended 30 September 2020 and for the financial year to date.

Highlights

Cash at the end of the quarter was $1,421.3k which is up from $1,005.1k at the beginning of the quarter.

This is a very strong positive performance from operating activities and a small investment in essential equipment in the quarter.

Although Revenue for the quarter is below last year, expenses for the quarter are materially improved from last year resulting in a positive profit for the quarter compared to a loss for the same quarter last year. Our major clients where revenue is down on last year have advised us that the downturn resulted mostly from a change in business cycles compared to last year but there is also some short term Covid 19 impact.

The cash balance has also increased due to a material reduction in debtors and inventories, offset by a reduction in amounts owing to creditors. Some of the debt reduction related to government Job Keeper and R&D grants that were receivable at the end of June 2020 and were received during the quarter.

There was no financing activity as the Share Placement and Rights Issue activities were all completed prior to 30 June 2020 and were included in the June 2020 Quarter report.

The company continues to monitor the unpredictable impacts of Covid 19, in particular as we head into a northern winter where a number of our major customers are based.

This release has been approved by the Board of Directors.

For further details contact:

DataDot Technology Limited

Patrick Raper Company Secretary Email: praper@datadotdid.com

About DataDot: DataDot Technology Limited provides world leading asset identification, management, protection and authentication solutions that deliver great value to customers. For more information please visit www.datadotdna.com.

DataDot Technology Limited , 8 Ethel Avenue, Brookvale, NSW 2100, Australia www.datadotdna.com I P: 1300 300 829 I E: info@datadotid.com

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

Name of entity

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DataDot Technology Limited - ASX DDT
ABN Quarter ended (“current quarter”)
54 091 908 726
30-Sep-20
Year to date
Current
Consolidated statement of cash flows (3 months)
quarter $A’000
$A’000
1. Cash flows from operating activities
1.1 Receipts from customers 1,173.7 1,173.7
1.2 Payments for -
a. research and development (24.0) (24.0)
b. product manufacturing and operating costs (470.4) (470.4)
c. advertising and marketing (4.1) (4.1)
d. leased assets - -
e. staff costs (177.5) (177.5)
f. administration and corporate costs (154.1) (154.1)
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 77.5 77.5
1.8 Other (provide details if material) - -
1.9 Net cash from / (used in) operating activities 421.1 421.1
2. Cash flows from investing activities
2.1 Payments to acquire:
a. entities - -
b. businesses - -
c. property, plant and equipment (4.9) (4.9)
d. investments - -
e. intellectual property - -
f. other non-current assets - -
2.2 Proceeds from disposal of: - -
a. entities - -
b. businesses - -
c. property, plant and equipment - -
d. investments - -
e. intellectual property - -
f. 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 (4.9) (4.9)
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ASX Appendix 4C

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

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3. Cash flows from financing activities
3.1 Proceeds from issues of equity securities (excluding
convertible debt securities) - -
3.2 Proceeds from issue of convertible debt securities - -
3.3 Proceeds from exercise of options - -
3.4 Transaction costs related to issues of equity securities - -
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 - -
4. Net increase / (decrease) in cash and cash
4.1 Cash and cash equivalents at beginning of period 1,005.1 1,005.1
Net cash from / (used in) operating activities (item 1.9
4.2 421.1 421.1
above)
Net cash from / (used in) investing activities (item 2.6
4.3 (4.9) (4.9)
above)
Net cash from / (used in) financing activities (item 3.10
4.4 above) - -
4.5 Effect of movement in exchange rates on cash held
4.6 Cash and cash equivalents at end of period 1,421.3 1,421.3
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ASX Appendix 4C

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

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5. Reconciliation of cash and cash equivalents Current quarter Previous quarter
at the end of the quarter (as shown in the consolidated
statement of cash flows) to the related items in the $A’000 $A’000
accounts
5.1 Bank balances 1,421.3 1,005.1
5.2 Call deposits
5.3 Bank overdrafts
5.4 Other (provide details)
Cash and cash equivalents at end of quarter (should
5.5 1,421.3 1,005.1
equal item 4.6 above)
6. Payments to related parties of the entity and their
Current quarter
associates
$A'000
6.1 Aggregate amount of payments to related parties and their associates included in
38.8
item 1
6.2 Aggregate amount of payments to related parties and their associates included in
item 2 nil
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Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments

7. Financing facilities Total facility amount at quarter end $A’000 Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity.	7. Financing facilities Total facility amount at quarter end $A’000 Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity.		Amount drawn at quarter end $A’000
7.1 Loan facilities 0 7.2 Credit standby arrangements 0 7.3 Other (please specify) 0			0 0 0
7.4 Total financing facilities	-		-
7.5 Unused financing facilities available at quarter end			Nil
7.6 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.

ASX Appendix 4C

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

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8. Estimated cash available for future operating activities $A’000
8.1 Net cash from / (used in) operating activities (Item 1.9) 421.1
8.2 Cash and cash equivalents at quarter end (Item 4.6) 1,421.3
8.3 Unused finance facilities available at quarter end (Item 7.5) -
8.4 Total available funding (Item 8.2 + Item 8.3) 1421.3
8.5 Estimated quarters of funding available (Item 8.4 divided by Item 8.1) 3.4
8.6 If Item 8.5 is less than 2 quarters, please provide answers to the following questions:
1.Does the entity expect that it will continue to have the current level of net operating cash flows for the time
being and, if not, why not?
Answer: N/A
2.Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its
operations and, if so, what are those steps and how likely does it believe that they will be successful?
Answer: N/A
3.Does the entity expect to be able to continue its operations and to meet its business objectives and, if so,
on what basis?
Answer: N/A
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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.

Date:

30-Oct-20

Authorised by: DataDot Technology Limited Board of Directors

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow 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 cash flow 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. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [ name of board committee – eg Audit and Risk Committee ]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations , the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

ASX Appendix 4C

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