DATADOT TECHNOLOGY LIMITED — Interim / Quarterly Report 2021

Apr 27, 2021

28 April 2021

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 31 March 2021.

This cash flow report is unaudited and discloses the inflows and outflows of cash during the quarter ended 31 March 2021 and for the financial year to date.

Highlights

Cash at the end of the quarter was $1,903.9k which is up from $1,631.8k at the beginning of the quarter and up from $1,005.1k at the beginning of the financial year.

This improved cash position is the result of a continuation of the strong positive trading performance that has followed on from the profitable result for 1H FY2021 announced in late February 2021.

Expenses for the quarter are again materially improved from last year providing a third quarter of profit compared to a loss of approximately $269.7k for the same quarter last year.

The cash balance has also improved due to a cyclical reduction in inventories, offset by an increase in debtors in line with improved revenues. Amounts owing to creditors is stable from quarter to quarter and in line with trading terms.

There was no financing activity during the quarter.

The company continues to monitor the potential for disruption from Covid-19, particularly in the Northern Hemisphere where major customers are located. To date the company has not experienced any on-going or material negative impacts.

Payments to Related Parties of $137k include Director Fees and salaries, reimbursement of expenses and Licence Fees paid in the normal course of business.

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

DataDot Technology Limited - ASX DDT

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ABN Quarter ended (“current quarter”)
54 091 908 726
31-Mar-21
Year to date
Current
Consolidated statement of cash flows (6 months)
quarter $A’000
$A’000
1. Cash flows from operating activities
1.1 Receipts from customers 828.6 2,952.9
1.2 Payments for -
a. research and development (0.1) (39.7)
b. product manufacturing and operating costs (216.0) (1,134.0)
c. advertising and marketing (11.3) (15.4)
d. leased assets - -
e. staff costs (172.0) (516.0)
f. administration and corporate costs (149.6) (413.5)
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
1.8 Other (provide details if material) - -
1.9 Net cash from / (used in) operating activities 279.5 911.8
2. Cash flows from investing activities
2.1 Payments to acquire:
a. entities - -
b. businesses - -
c. property, plant and equipment (7.4) (13.0)
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 (7.4) (13.0)
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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

3. 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 Transaction costs related to issues of equity securities Proceeds from borrowings Repayment of borrowings Transaction costs related to loans and borrowings Dividends paid Other (provide details if material) Net cash from /(used in) financing activities Proceeds from exercise of options Cash flows from financing activities Proceeds from issues of equity securities (excluding convertible debt securities) Proceeds from issue of convertible debt securities	- - - - - - - - -	- - - - - - - - -
	-	-
4. 4.1 4.2 4.3 4.4 4.5 4.6 Net cash from / (used in) financing activities (item 3.10 above) Effect of movement in exchange rates on cash held Cash and cash equivalents at end ofperiod Net cash from / (used in) investing activities (item 2.6 above) Net increase / (decrease) in cash and cash Cash and cash equivalents at beginning of period Net cash from / (used in) operating activities (item 1.9 above)	1,631.8 279.5 (7.4) -	1,005.1 911.8 (13.0) -
	1,903.9	1,903.9

ASX Appendix 4C

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

5. Reconciliation of cash and cash equivalents	Current quarter	Previous quarter
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts Cash and cash equivalents at end of quarter (should equal item 4.6 above)	$A’000 1,903.9	$A’000 1,631.8
	1,903.9	1,631.8
6. 6.1 6.2 Payments to related parties of the entity and their associates Aggregate amount of payments to related parties and their associates included in item 1 Aggregate amount of payments to related parties and their associates included in item 2
		Current quarter $A'000
		137.1 nil

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 Amount drawn at quarter end $A’000 $A’000 7.1 Loan facilities 0 0 7.2 Credit standby arrangements 0 0 7.3 Other (please specify) 0 0 7.4 Total financing facilities - - 7.5 Nil 7.6 Add notes as necessary for an understanding of the sources of finance available to the entity. Unused financing facilities available at quarter end 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. Note: the term “facility’ includes all forms of financing arrangements available to the entity.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
	0 0 0	0 0 0
	-	-
		Nil

ASX Appendix 4C

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

8. 8.1 8.2 8.3 8.4 8.5	Estimated cash available for future operating activities Net cash from / (used in) operating activities (Item 1.9) Cash and cash equivalents at quarter end (Item 4.6) Unused finance facilities available at quarter end (Item 7.5) Total available funding (Item 8.2 + Item 8.3)	$A’000 279.5 1,903.9 - 1,903.9
	Estimated quarters of funding available (Item 8.4 divided by Item 8.1) Note the last three quarters have generated positive cash flow from operations.	6.8
8.6	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? If Item 8.5 is less than 2 quarters, please provide answers to the following questions:
	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

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:

28-April-21

Authorise 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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