ECHOIQ LIMITED — Interim / Quarterly Report 2019

Jan 30, 2020

==> picture [133 x 75] intentionally omitted <==

ASX:HWH RELEASE / 31 JANUARY 2020

QUARTERLY ACTIVITIES REPORT AND APPENDIX 4C - DECEMBER 2019

PrescriptiveAnalyticsandAICompanyHoustonWeHaveLimited(ASX:HWH)
(‘HoustonWeHave’or‘TheCompany’)ispleasedtoprovidethisquarterly
activities report for the period ending 31 December 2019.

Thequartercanbecharacterisedasoneofsignificantprogresswherethe
Companycompletedavaluableacquisitionthatstrengtheneditscore
capability,expandedexistingcontractsandenterednewJointVenture
agreements,grewitsleadershipteamandintroducedanewbrandandcorporate
identity.

AlltheseinitiativescreateasolidplatformforgrowthandallowHoustonWe
Havetobuildastrongandrecognisedpresencewithinthemarketsinwhichit
operates,andimportantly,securecontractsthatbuildstablerecurring
revenue streams for the future.

Strategic acquisitions underpinning future growth

InOctobertheCompanycompletedtheacquisitionof100%ofPrometheus
InformationPtyLimited(Prometheus)for$600,000inupfrontcashandscrip
basedpayments,andaperformance-basedcashpaymentof~$73,000basedon
future milestones being met.

WithheadquartersinCanberra,Prometheusisahighlycomplementarybusiness
providingprofessionalservicesandsoftwaretothehealthinsurancesector.
Ithas17ofthe37registeredhealthinsurancefundsinAustraliaasclients
aswellashealthinsurancetechnologyproviderHAMBS(HospitalandMedical
Benefits System).

Prometheusgeneratesannualisedrevenueof~$670,000andHoustonWeHaveis
confidentitcanincreasethisrevenuebaseastheCompany’sAIsoftware
made available to Prometheus’ clients.

HoustonWeHaveismarryingitscoreAIapproachofidentifyingriskand
opportunityforPrometheus’clientsbyextendingtheinsightsofcurrent
offeringssuchasfrauddetectionanddevelopingnewinsightsthatstrengthen
thebusinessandoperationsofthehealthfunds.Inaddition,theCompany
actively pursuing new sectors beyond health insurance.

Houston We Have Ltd. ACN 142 901 353. 3/33 Atchison Street St Leonards NSW Australia +61 2 9159 3719
Sydney> Canberra> Adelaide> Perth> Edinburgh. Human-Centred AI. Problem solved.

==> picture [124 x 69] intentionally omitted <==

New Joint Venture established

Inanotherpleasingdevelopmentforthequarter,theCompanyestablishedData
DistilleryPtyLtd(DataDistillery)inconjunctionwithPotentiatePty
Limited (Potentiate) as a special purpose 50/50 joint venture (JV) company.

DataDistilleryisactivelyhelpingbusinessesrefineandenhanceconsumer
datausingHoustonWeHavepatentedsoftware.DataDistillerywillprovide
insightsaroundcustomerbehaviourtohelpbanking,automotiveand
telecommunicationscompaniesinteractbetterwiththeircustomerstodrive
retentionandincreasesales.HoustonWeHaveisprovidingthetechnology
platform and skills which embrace data science and human-centred AI.

TheJVhasthepotentialtogeneratesignificantrevenueforHoustonWeHave
withPotentiatenowactivelymarketingthesolutiontoitsglobalclientbase
and early progress is most encouraging.

Department of Defence contract extension

InOctober,HoustonWeHavesuccessfullyextendeditscontractwiththe
AustralianDepartmentofDefencetotakethetotalcontractvaluetoalmost
$3m.

TheCompanywillsupplyhardwareasaserviceinsupportoftrainingcourses
conductedatnumeroustrainingsitesacrossAustralia.Coursesarenow
underwayandfocusedontheCompany’sprescriptive,human-centredAIand
uniqueabilitytofocusdecisionmakingincriticalandcomplexareaswith
confidence.

Partner update

AVVA,theJointVenturewithMadeInTheNowhasgainedtractionwith
EarthTech,www.earthtech.io,runninganimpactchallengewhichhasattracted
850+teamsfrom75+countries.Roughly100judgesarecomingtogetherto
review40shortlistedprojects,andtheseexpertsrangefromfieldresearchers
inAntarctica,toexpertsinanynumberoftheUNSDGs,toserial
entrepreneurs.Thevarietyofknowledgeandexpertiseismassive,butit
alsoveryvaluable-andAVVAishelpingEarthTechtoputastructurearound
howtheseexpertsarethinkingoftheventures,andcodifytheopinionin
waythatwillhelpEarthTechtoidentifywhichprojectsarethemostclosely
alignedtotheirultimategoalofsocialimpactalignedtooneormoreof
UN SDGs.

Antler,aglobalstartupgeneratorandearly-stageVCfirmwww.antler.co,will
useAVVAaspartofitsfirstcohortof2020,whichlaunchedonMonday27th

==> picture [124 x 69] intentionally omitted <==

January.Thecohort,whichismadeupof87entrepreneursleadingtomorethan
30teams,willuseAVVAatthreekeypointsthroughoutthe10weekprogram
acceleratethequalityofconversationanddecisionmakingwithinthe
accelerator.

Team strengthened

Duringthequarter,theCompanystrengtheneditsteamwiththeappointmentof
Rakesh Patel as Chief Technology Officer and Jacki McAvenna as CFO.

JackibeganhercareerincorporateandcommercialfinancewithPwCbefore
joiningbrandssuchasMyer,Target,iSelectandLinfoxinseniorfinance
planningroles.SheholdsaBachelorofCommercefromtheUniversityof
Adelaide and is a member of Chartered Accountants Australia and New Zealand.
Forthepast16years,Rakeshhasbeenrunningprofessionalservicesanddata
analyticsbusinesses.Hehasawealthofexperiencebuildingandrunning
engineeringandprofessionalservicesteams.Hehasexperienceinmachine
learning,dataanalytics,servicemanagementandmanagingITinfrastructure.
Hehasover10yearsofexperienceinCloudTechnologies,includingAWS,
Azure, Google Cloud, OpenStack, HPE Helion Cloud System.

RakeshholdsaMastersofScienceDegree(ComputerScience)fromThe
UniversityofAucklandandaBachelorofTechnologyDegree(ComputerSystems
Engineering)fromMasseyUniversity.Headdsconsiderablebenchstrengthto
the Houston We Have team and we are delighted to have secured his services.

A new brand & corporate identity

InDecembertheCompanyintroducedanewbrandandcorporateidentity-
HoustonWeHave.TheCompanyiscompetingagainstsomegloballyrecognised
organisationsthathaveentrenchedcustomerrelationshipsthataretrusted
proven in the delivery of AI and prescriptive analytics solutions.

Ourobjectivehasbeentomatchamemorablebrand/corporateidentitywith
technologysolutionthatmeetsorexceedswhatiscurrentlyavailableon
markettodayallowingustocompetewiththesewell-entrenchedcompanies.
areconfidentthatintimeourbrandwillbesynonymouswithprescriptive
analyticsandhuman-centredAIasweprogressivelyestablishourplacein
market.

Quarterly financial summary

Cashreceiptsfromcustomersforthequarterwere$92,000(priorquarter
$86,000).Cashreceiptsarelikelytoincreaseinsubsequentquartersas

==> picture [124 x 69] intentionally omitted <==

contributionsfromthePrometheusbusinessarerecognisedandfurtherrevenue
is booked from the scaled up Department of Defence contract.

Quarterlynetcashoutflowswere$656,000andtheCompanywillbevigilantin
managingitscostbaseconservatively.HoustonWeHaveendedthequarterwith
ahealthycashbalanceof~$3.6mwhichgivestheCompanythenecessary
financial flexibility to organically grow the client base.

Objectives for the March quarter

TheMarchquarterhascommencedwellforHoustonWeHavewithakeyfocuson
newbusinessdevelopmentandbuildingoutthepipelineofrevenue-generating
opportunities.OpportunitiesareadvancingintheUKandAustraliainpublic
health, national security, insurance, banking and law enforcement.

Objectives for the quarter include:

• Integration of the Prometheus and Houston We Have technology platforms to create a ‘seamless stack’ that can be deployed for different problems and clients.

• Meeting with and ensuring the continuity of the existing Prometheus client base and building market awareness of the business.

• Developing an AI solution using Houston We Have software and services that builds upon the current Prometheus offering.

• Pursuing growth opportunities in the UK.

• Executing on the expanded Department of Defence expanded partnership.

ENDS

Elizabeth Whitelock
Managing Director and CEO
Houston We Have Ltd.

Authorised for release by the Board of Directors of Houston We Have Ltd

For more information, please contact: investor@HoustonWeHave.ai

ABOUT US: Houston we have Human-Centred AI. As a team, we set out to enhance decision
making: Augmented Intelligence gives humans the ability to predict the future
at speed and without bias.Military grade, originally designed and built for the
intelligence community, our patented software delivers insights beyond any AI in the
universe. Now available for use by all clever humans. HoustonWeHave.ai problem solved

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

+Rule 4.7B

Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B

Introduced 31/03/00 Amended 30/09/01, 24/10/05, 17/12/10, 01/09/16

Name of entity

Houston We Have Limited ABN Quarter ended (“current quarter”) 48 142 901 353 31 December 2019

Consolidated statement of cash flows	Current quarter $A’000	Year to date (6 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 (includes staff 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 (re-compliance costs) 1.9 Net cash from / (used in) operating activities	93 - (275) - - (65) (110) - 7 - - - -	179 - (470) (6) - (243) (368) - 8 (1) - - (145)
	(351)	(1,046)
2. Cash flows from investing activities 2.1 Payments to acquire: (a) property, plant and equipment (b) businesses (see item 10) (c) investments	(63) (503) -	(63) (503) -

• See chapter 19 for defined terms

1 September 2016

Page 1

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

Consolidated statement of cash flows	Current quarter $A’000	Year to date (6 months) $A’000
(d) intellectual property (e) other non-current assets 2.2 Proceeds from disposal of: (a) property, plant and equipment (b) businesses (see item 10) (c) investments (d) intellectual property (e) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (cash acquired on business acquisition) 2.6 Net cash from / (used in) investing activities	- - - - - - - - - 273	- - - - - - - - - 273
	(293)	(293)
3. Cash flows from financing activities 3.1 Proceeds from issues of shares 3.2 Proceeds from issue of convertible notes 3.3 Proceeds from exercise of share options 3.4 Transaction costs related to issues of shares, convertible notes or options 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	- - - (12) - - - - -	5,400 - - (368) - (804) - - -
	(12)	4,228
4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of quarter/year to date 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above)	4,259 (351) (293) (12)	714 (1,046) (293) 4,228

• See chapter 19 for defined terms

1 September 2016

Page 2

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

Consolidated statement of cash flows	Current quarter $A’000	Year to date (6 months) $A’000
4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of quarter	-	-
	3,603	3,603

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)	3,603 - - -	259 4,000 - -
	3,603	4,259

6.	Payments to directors of the entity and their associates	Current quarter
		$A'000
6.1	Aggregate amount of payments to these parties included in item 1.2	65
6.2	Aggregate amount of cash flow from loans to these parties included in	-
	item 2.3
6.3	Include below any explanation necessary to understand the transactions included in items 6.1 and
	6.2

Includes director salaries, fees and superannuation, inclusive of GST.

7.	Payments to related entities of the entity and their associates	Current quarter
		$A'000
7.1	Aggregate amount of payments to these parties included in item 1.2		-
7.2	Aggregate amount of cash flow from loans to these parties included in		-
	item 2.3
7.3	Include below any explanation necessary to understand the transactions included in items 7.1 and
	7.2

• See chapter 19 for defined terms

1 September 2016

Page 3

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

8. Financing facilities available Add notes as necessary for an understanding of the position Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 8.1 Loan facilities (40) - 8.2 Credit standby arrangements - - 8.3 Other (please specify) - - 8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
	(40)	-
	-	-
	-	-

HWH Software Pty Ltd ANZ overdraft

9. Estimated cash outflows for next quarter	$A’000
9.1 Research and development 9.2 Product manufacturing and operating costs 9.3 Advertising and marketing 9.4 Leased assets 9.5 Staff costs 9.6 Administration and corporate costs 9.7 Other (provide details) 9.8 Total estimated cash outflows	- 436 31 - 65 136 -
	668

10. Acquisitions and disposals of business entities (items 2.1(b) and 2.2(b) above)	Acquisitions	Acquisitions	Disposals
10.1 Name of entity	Prometheus Information Pty Ltd	Data Distillery Pty Ltd	N/A
10.2 Place of incorporation or registration	Australia	Australia	N/A
10.3 Consideration for acquisition or disposal	$500,000 cash, $100,000 equity (being 2,457,002 shares), and $73,099 contingent cash consideration	$1	N/A
10.4 Total net assets	$nil net tangible assets	$1	N/A
10.5 Nature of business	Provision of professional services and software to the health insurance sector	Special purpose joint venture to help businesses refine and enhance consumer data	N/A

• See chapter 19 for defined terms

1 September 2016

Page 4

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

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.

Sign here: Elizabeth Whitelock Date: 31 January 2020 Director

Print name: Elizabeth Whitelock

Notes

1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2. If this quarterly 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 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. See chapter 19 for defined terms 1 September 2016

Page 5