DATADOT TECHNOLOGY LIMITED — Interim / Quarterly Report 2020

Jan 30, 2020

ASX Announcement

31 January 2020

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 31 December 2019.

This cash flow report is unaudited and discloses the inflows and outflows of cash during the quarter ended 31 December 2019 and for the financial year to date.

Highlights

The second quarter shows close to break even cash flow from operating activities compared to the FY 2019 average quarterly equivalent amount of greater than negative $360k.

Receipts from Customers incudes the first payments for new contracts for sale and application of motor vehicle kits in Europe through our South Africa distributor who has advised that sales to Europe will continue to grow in 2H FY2020.

Payments to suppliers reflects a lower overall cost base from the implementation of cost saving measures and efficiency gains achieved. Restructuring costs on a reduced basis will continue to be incurred up to the end of Q3 of FY2020.

Costs of finance includes interest on convertible notes that is payable on 31 December and 30 June each year throughout the life of the notes.

As a result of expected revenue growth, particularly from our South Africa distributor, and expenses savings identified and implemented, we expect operating cashflow to improve beyond breakeven in 2H FY2020.

Related Party transactions

The Aggregate amounts paid to related parties includes $47.3k in salaries, wages and management fees and $15.7k in interest on the convertible notes. In addition, $4.4k of third party business expenses initially paid by related parties has been reimbursed to them. The company continues to enjoy strong cash flow support from the directors through deferral of payments due to them for salaries, wages, management fees and some other operating expenses.

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.

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Appendix 4C

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

Name of entity

DataDot Technology Limited - ASX DDT

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----- Start of picture text ----- ABN Quarter ended (“current quarter”)54 091 908 72631-Dec-19Year to date (6CurrentConsolidated statement of cash flows months)quarter $A’000$A’0001. Cash flows from operating activities1.1 Receipts from customers 1,063.2 2,063.11.2 Payments fora. research and development - -b. product manufacturing and operating costs (239.3) (529.1)c. advertising and marketing (34.5) (40.4)d. leased assets - -e. staff costs (367.0) (847.4)f. administration and corporate costs (407.6) (804.6)1.3 Dividends received (see note 3) - -1.4 Interest received - -1.5 Interest and other costs of finance paid (49.2) (51.0)1.6 Income taxes paid 10.9 9.01.7 Government grants and tax incentives - -1.8 Other (provide details if material) - -1.9 Net cash from / (used in) operating activities (23.6) (200.5)2. Cash flows from investing activities2.1 Payments to acquire:a. entities - -b. businesses - -c. property, plant and equipment (6.3) (29.7)d. investments - -e. intellectual property - -f. other non-current assets - -2.2 Proceeds from disposal of:a. entities - 0b. businesses - 0c. property, plant and equipment - (0.0)d. investments (0.2) -e. intellectual property - 0f. other non-current assets - 02.3 Cash flows from loans to other entities 0.3 0.42.4 Dividends received (see note 3) - 02.5 Other (provide details if material) - 02.6 Net cash from / (used in) investing activities (6.2) (29.4)----- End of picture text -----

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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----- Start of picture text ----- 3. Cash flows from financing activities3.1 Proceeds from issues of equity securities (excluding 22.0 58.8convertible debt securities)3.2 Proceeds from issue of convertible debt securities - 600.03.3 Proceeds from exercise of options - -3.4 Transaction costs related to issues of equity securities - -3.5 Proceeds from borrowings 1.8 1.83.6 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 24 660.74. Net increase / (decrease) in cash and cash4.1 Cash and cash equivalents at beginning of period 631.5 194.7Net cash from / (used in) operating activities (item 1.94.2 (23.6) (200.5)above)Net cash from / (used in) investing activities (item 2.64.3 (6.2) (29.4)above)Net cash from / (used in) financing activities (item 3.104.4 23.8 660.7above)4.5 Effect of movement in exchange rates on cash held4.6 Cash and cash equivalents at end of period 625.5 625.5----- End of picture text -----

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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----- Start of picture text ----- 5. Reconciliation of cash and cash equivalents Current quarter Previous quarterat the end of the quarter (as shown in the consolidatedstatement of cash flows) to the related items in the $A’000 $A’000accounts5.1 Bank balances 625.5 631.55.2 Call deposits5.3 Bank overdrafts5.4 Other (provide details)Cash and cash equivalents at end of quarter (should5.5 625.5 631.5equal item 4.6 above)6. Payments to related parties of the entity and theirCurrent quarterassociates$A'0006.1 Aggregate amount of payments to related parties and their associates included initem 1 59,4806.2 Aggregate amount of payments to related parties and their associates included initem 2 nil----- End of picture text -----

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 facilitiesTotal facility amountat quarter endAmount drawn atquarter end$A’000$A’000Add notes as necessary for an understanding of the sources of financeavailable to the entity.Note: the term “facility’ includes all forms of financing arrangementsavailable to the entity.
7.1Loan facilities007.2Credit standby arrangements007.3Other (please specify)00
7.4Total financing facilities- -
7.5NilUnused financing facilities available at quarter end
7.6Include in the box below a description of each facility above, including the lender, interest rate, maturitydate and whether it is secured or unsecured. If any additional financing facilities have been entered into or areproposed 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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----- Start of picture text ----- 8. Estimated cash available for future operating activities $A’0008.1 Net cash from / (used in) operating activities (Item 1.9) (23.6)8.2 Cash and cash equivalents at quarter end (Item 4.6) 625.58.3 Unused finance facilities available at quarter end (Item 7.5) -8.4 Total available funding (Item 8.2 + Item 8.3) 625.58.5 Estimated quarters of funding available (Item 8.4 divided by Item 8.1) 26.5468.6 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 timebeing and, if not, why not?Answer: N/A2.Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund itsoperations and, if so, what are those steps and how likely does it believe that they will be successful?Answer: N/A3.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----- End of picture text -----

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:

31-Jan-20

Authorised DataDot Technology Limited Board of Directors

by:

(Name of body or officer authorising release – see note 4)

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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