DTI GROUP LTD — Interim / Quarterly Report 2022

Oct 27, 2021

==> picture [96 x 35] intentionally omitted <==

28[th] October 2021

DTI GROUP LTD (ASX:DTI) QUARTERLY BUSINESS ACTIVITY REPORT & APPENDIX 4C

Australian technology provider DTI Group Ltd (“ DTI ”) (ASX: DTI) , releases its Quarterly Business Activity Report and Appendix 4C Cash Flow Report for the quarter ending 30 September 2021 .

DTI has recorded a reduction in Net Profit against prior-year comparisons for the September quarter/YTD. Revenue was also lower than the same period last year.

Business Activity

As per the ASX release dated 3 September 2021, DTI announced a capital raising by way of a 1 for 3 non-renounceable entitlement offer. This was completed on 5 October 2021 and raised approximately $2 million via the issue of approximately 111.7 million shares.

DTI remains focused on the quality delivery of the products and services to customers which include:

• Alstom Transport India Ltd

• Metro Trains Melbourne

• Brisbane City Council

• Siemens Mobility, Inc

Targeted actions to improve revenue are on track.

Customer trials of a new digital recorder system, targeting the bus market segment, are progressing well and first orders have been received.

The trial of a “live look-in” on vehicles for an Australian State Government Agency has concluded successfully.

A plan to reduce recurring expenditure was executed.

The global shortage of semi-conductors and electronic components is increasing the deliverytime of some hardware products.

Forward Outlook

DTI is focused on successfully delivering the pipeline of contracted opportunities, improving the engagement with existing customers and potential customers, and continuing the development of products which are attractive to target market segments.

Appendix 5B:

The quarterly cashflow report (4C) for the quarter details expenditure on the abovementioned operations. During the quarter, material expenditure related to operating costs of $2.98M, staff costs of $1.39M and administration costs of $0.45M.

A closing cash equivalent balance of $1.8M is reported as of 30[th] September 2021, with net operating cash inflow of $0.01M, which was in line with Company expectations.

In accordance with Listing Rule 4.7C, payments made to related parties and their associates are included in Appendix 4C section 6.1 and these payments are entirely for Directors’ fees.

This ASX communication has been approved for release by Mr. Greg Purdy, Chairman.

DTI GROUP LTD

Page | 1

About DTI Limited

DTI develops and provides world-leading surveillance, video analytics, and passenger information systems technology and services to the worldwide mobile transit industry. Our customers include transit agencies, vehicle operators, vehicle manufacturers, and law enforcement agencies. Products and services include on-board recording equipment, passenger information equipment, fleet management systems, back-end mass storage and retrieval facilities, and end-to-end managed services.

Core technology development and systems design activities are undertaken from the company’s headquarters in Perth, Australia.

For further information, please contact: Mr. Matt Strack Chief Executive Officer +61 447 007 505

Mr. Ian Hobson Company Secretary +61 (8) 9388 8290

DTI GROUP LTD

Page | 2

Appendix 4C

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

Name of entity

DTI Group Limited ABN Quarter ended (“current quarter”) 15 069 791 091 30/09/2021

Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) research and development (b) product manufacturing and operating costs (c) advertising and marketing (d) leased assets (e) staff costs (f) administration and corporate costs 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 1.8 Other (GST) 1.9 Net cash from / (used in) operating activities	4,106 (168) (1,975) - (63) (1,394) (452) - - (1) - - (45)	4,106 (168) (1,975) - (63) (1,394) (452) - - (1) - - (45)
	8	8
2. Cash flows from investing activities 2.1 Payments to acquire or for: (a) entities (b) businesses (c) property, plant and equipment (d) investments	- - - -	- - - -

DTI GROUP LTD

Page | 3

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
(e) intellectual property (f) other non-current assets 2.2 Proceeds from disposal of: (g) entities (h) businesses (i) property, plant and equipment (j) investments (k) intellectual property (l) 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 - - - - - -	- - - 4 - - - - - -
		4	4
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 or convertible debt 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		- - - - 1,387 (441) - - 40	- - - - 1,387 (441) - - 40
		986	986
4. 4.1 4.2	Net increase / (decrease) in cash and cash equivalents for the period Cash and cash equivalents at beginning of period Net cash from / (used in) operating activities (item 1.9 above)	766 8	766 8

DTI GROUP LTD

Page | 4

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
4.3 4.4 4.5 4.6	Net cash from / (used in) investing activities (item 2.6 above) 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 of period	4 986 38	4 986 38
		1,802	1,802
5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts		Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)		1,802 - - -	766 - - -
		1,802	766
6. Payments to related parties of the entity and their associates			Current quarter $A'000
6.1 Aggregate amount of payments to related parties and their associates included in item 1 44 6.2 Aggregate amount of payments to related parties and their associates included in item 2 - 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.			44
			-

DTI GROUP LTD

Page | 5

7. 7.1 7.2 7.3 7.4 7.5 7.6	Financing facilities 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. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 Loan facilities - - Credit standby arrangements - - Other (credit card) 263 148 Total financing facilities 263 148 Unused financing facilities available at quarter end 115 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.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
		-	-
		-	-
		263	148
		263	148
	American Express Credit Card facility. Rolling monthly maturity date. Unsecured.

8.	Estimated cash available for future operating activities	$A’000
8.1 8.2 8.3 8.4 8.5 8.6	Net cash from / (used in) operating activities (item 1.9) 8 Cash and cash equivalents at quarter end (item 4.6) 1,802 Unused finance facilities available at quarter end (item 7.5) 115 Total available funding (item 8.2 + item 8.3) 1,916 Estimated quarters of funding available (item 8.4 divided by item 8.1) N/A Note: if the entity has reported positive net operating cash flows in item 1.9, answer item 8.5 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.5. If item 8.5 is less than 2 quarters, please provide answers to the following questions: 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?	8 1,802 115
		1,916
	8.6.2 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?
	8.6.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?
	Note: where item 8.5 is less than 2 quarters, all of questions 8.6.1, 8.6.2 and 8.6.3 above must be answered.

DTI GROUP LTD

Page | 6

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: 28/10/2021

Authorised by: 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.

DTI GROUP LTD

Page | 7