FIRSTWAVE CLOUD TECHNOLOGY LIMITED — Interim / Quarterly Report 2017

Feb 27, 2017

Firstwave Cloud Technology Limited Appendix 4D Half-year report

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1. Company details

Name of entity: Firstwave Cloud Technology Limited ABN: 35 144 733 595 Reporting period: For the half-year ended 31 December 2016 Previous period: For the half-year ended 31 December 2015

2. Results for announcement to the market

On 5 May 2016, Firstwave Cloud Technology Limited (the legal parent, previously known as Crestal Petroleum Limited ('Crestal')) acquired First Wave Technology Pty Ltd ('the legal subsidiary' or 'Firstwave'). The acquisition was accounted for as a share-based payment and the principles of reverse acquisition accounting applied. Refer to 30 June 2016 annual report for further details.

The current half-year results represents the consolidated entity comprising Firstwave and Crestal. The comparative information represents the results for Firstwave only.

				$
Revenues from ordinary activities	up	9.7%	to	2,850,917
Loss from ordinary activities after tax attributable to the owners of
Firstwave Cloud Technology Limited	up	86.0%	to	(2,959,123)
Loss for the half-year attributable to the owners of Firstwave Cloud
Technology Limited	up	86.0%	to	(2,959,123)

Dividends

There were no dividends paid, recommended or declared during the current financial period.

Comments

Refer to 'Review of operations' included in the Directors' report for further commentary.

3. Net tangible assets

Net tangible assets per ordinary security	Reporting period Cents 2.28	Previous period Cents (0.17)

The net tangible assets per ordinary security is calculated based on 179,786,485 ordinary shares on issue as at 31 December 2016 and 115,506,574 ordinary shares that would have been in existence had the acquisition/group reorganisation occurred as at 31 December 2015.

4. Audit qualification or review

Details of audit/review dispute or qualification (if any):

The financial statements were subject to a review by the auditors and the review report is attached as part of the Interim Report.

Firstwave Cloud Technology Limited Appendix 4D Half-year report

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5. Attachments

Details of attachments (if any):

The Interim Report of Firstwave Cloud Technology Limited for the half-year ended 31 December 2016 is attached.

6. Signed

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Signed _________

Date: 27 February 2017

Alexander Kelton Chairman Sydney

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Firstwave Cloud Technology Limited ABN 35 144 733 595

Interim Report - 31 December 2016

Firstwave Cloud Technology Limited Directors' report 31 December 2016

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The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'consolidated entity') consisting of Firstwave Cloud Technology Limited (referred to hereafter as the 'company' or 'parent entity') and the entities it controlled at the end of, or during, the half-year ended 31 December 2016.

Directors

The following persons were directors of Firstwave Cloud Technology Limited during the whole of the financial half-year and up to the date of this report, unless otherwise stated:

Alexander Kelton - Chairman Steven O'Brien David Garnier Edward Keating Scott Lidgett Paul Macrae

Principal activities

During the financial half-year, the principal continuing activities of the consolidated entity comprise of development and sale of internet security software.

Review of operations

The consolidated entity addresses the burgeoning cloud security services market delivering managed Software as a Service ('SaaS') security solutions. The consolidated entity occupies a unique position in this market providing a platform for the delivery of a range of market leading security software via the cloud to customers of telecommunications companies.

Specifically, the consolidated entity integrates security products from Palo Alto and Cisco into its own cloud security platform which enables delivery of white labelled cloud security services telecommunications companies.

During the first half of FY 2017, the consolidated entity intensified its focus on building capability and capacity of its operations to address a larger segment of its addressable market with significant investment in product development, operational resources and go to market (GTM) campaigns.

Financial review

On 5 May 2016, Firstwave Cloud Technology Limited (previously known as Crestal Petroleum Limited ('Crestal')) acquired First Wave Technology Pty Ltd ('the legal subsidiary' or 'Firstwave'). For accounting purposes, the acquisition was accounted for as a share-based payment with the principles of reverse acquisition accounting applied. Therefore the current half-year financial statements represent those of the consolidated entity comprising Firstwave and Crestal. The comparative period results reflect Firstwave results only.

(a) Profit or loss performance

Revenue for the half-year was $2,850,917, representing growth of 9.7% over the prior comparative period, with a corresponding growth in gross margin of 5.8%.

The loss for the consolidated entity after providing for income tax amounted to $2,959,123 (31 December 2015: Loss $1,591,189). This result includes the full impact of the recognition of non-cash share-based payment expenses of $671,551 on account of the stock options granted to employees and officers.

These results are mainly driven by continued growth in the cloud based infrastructure services industry. Growth in orders reflects higher demand for the consolidated entity’s ESP© (Enterprise Specific Protection) solutions which increases the number of available services on the platform.

During the half year, the consolidated entity also launched its next generation firewall ('NGFW') product. Strong demand in the Telstra channel has resulted in 45 orders to date. This has resulted in the ongoing uplift in monthly recurring revenue ('MRR') to $425,000 in December 2016.

The consolidated entity has also invested in key sales and product development personnel with the overall headcount increasing from 41 at 30 June 2016 to 53 as at 31 December 2016.

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Firstwave Cloud Technology Limited Directors' report 31 December 2016

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Business Metrics

Business Metrics
	31 Dec 2016	30 Jun 2016 31 Dec 2015
Nodes	9	5	5
Telstra customers	154	123	128
NGFW	45	-	-
People (excluding directors)	53	41	31
Product (engineering and development)	11	9	6
Sales and marketing	15	12	8
MRR	$425,000	$370,000	$320,000

(b) Statement of financial position

Net assets reflect those of the consolidated entity and include cash proceeds from the equity raising that occurred late last year.

With minimal debt, and given that a large part of the consolidated entity's asset base is cash of $3,168,827 and intangible assets of $2,337,912, the consolidated entity has the resources to continue current operations. Trade receivables of $1,548,754 outstanding at 31 December 2016 have been substantially realised subsequent to the year end.

Significant changes in the state of affairs

There were no significant changes in the state of affairs of the consolidated entity during the financial half-year.

Auditor's independence declaration

A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out immediately after this directors' report.

This report is made in accordance with a resolution of directors, pursuant to section 306(3)(a) of the Corporations Act 2001.

On behalf of the directors

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Alexander Kelton Chairman

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_________ Steven O'Brien Managing Director

27 February 2017

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Level 17, 383 Kent Street Sydney NSW 2000

Correspondence to: Locked Bag Q800 QVB Post Office Sydney NSW 1230

T +61 2 8297 2400 F +61 2 9299 4445 E info.nsw@au.gt.com W www.grantthornton.com.au

Auditor’s Independence Declaration

To The Directors of Firstwave Cloud Technology Limited

In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the review of Firstwave Cloud Technology Limited for the half-year ended 31 December 2016, I declare that, to the best of my knowledge and belief, there have been:

• a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

• b no contraventions of any applicable code of professional conduct in relation to the review.

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GRANT THORNTON AUDIT PTY LTD Chartered Accountants

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C F Farley Partner - Audit & Assurance

Sydney, 27 February 2017

Grant Thornton Audit Pty Ltd ACN 130 913 594

a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.

Liability limited by a scheme approved under Professional Standards Legislation. 3

Firstwave Cloud Technology Limited
Contents
31 December 2016
Statement of profit or loss and other comprehensive income	5
Statement of financial position	6
Statement of changes in equity	7
Statement of cash flows	8
Notes to the financial statements	9
Directors' declaration	13
Independent auditor's review report to the members of Firstwave Cloud Technology Limited	14

General information

The financial statements cover Firstwave Cloud Technology Limited (referred to as the 'company' or 'parent') as a consolidated entity consisting of Firstwave Cloud Technology Limited and the entities it controlled at the end of, or during, the half-year (referred to as the 'consolidated entity'). The financial statements are presented in Australian dollars, which is Firstwave Cloud Technology Limited's functional and presentation currency.

Firstwave Cloud Technology Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business is:

Level 10, 132 Arthur Street North Sydney, NSW 2060 Australia

A description of the nature of the consolidated entity's operations and its principal activities are included in the directors' report, which is not part of the financial statements.

The financial statements were authorised for issue, in accordance with a resolution of directors, on 27 February 2017. The directors have the power to amend and reissue the financial statements.

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Firstwave Cloud Technology Limited Statement of profit or loss and other comprehensive income For the half-year ended 31 December 2016

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Note Revenue Sales revenue 3 Cost of sales Gross profit Other income 4 Expenses Sales and marketing Engineering and development General and administration Listing expenses Finance costs Total expenses Loss before income tax benefit Income tax benefit Loss after income tax benefit for the half-year attributable to the owners of Firstwave Cloud Technology Limited Other comprehensive income for the half-year, net of tax Total comprehensive income for the half-year attributable to the owners of Firstwave Cloud Technology Limited Basic earnings per share 12 Diluted earnings per share 12 Refer to note 1 for explanation on comparatives.	Consolidated 31 Dec 2016 31 Dec 2015 $ $ 2,850,917 2,599,283 (1,024,813) (873,325) 1,826,104 1,725,958 406,820 120,552 (1,222,523) (1,056,367) (1,529,348) (902,362) (2,358,427) (1,464,963) (82,771) - (20,002) (59,757) (5,213,071) (3,483,449) (2,980,147) (1,636,939) 21,024 45,750 (2,959,123) (1,591,189) - - (2,959,123) (1,591,189) Cents Cents (1.65) (1.46) (1.65) (1.46)
	1,826,104
	406,820 (1,222,523) (1,529,348) (2,358,427) (82,771) (20,002)
	(5,213,071)
	(2,980,147) 21,024
	(2,959,123) -
	(2,959,123)
	Cents (1.65) (1.65)

The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes

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Firstwave Cloud Technology Limited Statement of financial position As at 31 December 2016

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Note Assets Current assets Cash and cash equivalents Trade and other receivables 5 Other Total current assets Non-current assets Property, plant and equipment Intangibles 6 Deferred tax Other Total non-current assets Total assets Liabilities Current liabilities Trade and other payables 7 Borrowings Employee benefits Other 8 Total current liabilities Non-current liabilities Borrowings Employee benefits Provisions Other 9 Total non-current liabilities Total liabilities Net assets Equity Issued capital Reserves Accumulated losses Total equity	Consolidated 31 Dec 2016 30 Jun 2016 $ $ 3,168,827 5,772,415 3,467,538 2,658,799 1,129,010 760,024 7,765,375 9,191,238 790,690 709,997 2,337,912 2,088,012 632,600 611,576 715,291 430,492 4,476,493 3,840,077 12,241,868 13,031,315 2,623,494 1,900,750 222,084 293,398 451,525 370,577 872,659 563,884 4,169,762 3,128,609 184,738 286,701 41,389 60,060 152,649 152,649 1,251,688 674,082 1,630,464 1,173,492 5,800,226 4,302,101 6,441,642 8,729,214 15,773,846 15,773,846 1,069,462 397,911 (10,401,666) (7,442,543) 6,441,642 8,729,214
	7,765,375
	790,690 2,337,912 632,600 715,291
	4,476,493
	12,241,868
	2,623,494 222,084 451,525 872,659
	4,169,762
	184,738 41,389 152,649 1,251,688
	1,630,464
	5,800,226
	6,441,642
	15,773,846 1,069,462 (10,401,666)
	6,441,642

The above statement of financial position should be read in conjunction with the accompanying notes

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Firstwave Cloud Technology Limited Statement of changes in equity For the half-year ended 31 December 2016

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Firstwave Cloud Technology Limited Statement of changes in equity For the half-year ended 31 December 2016
Consolidated Balance at 1 July 2015 Loss after income tax benefit for the half-year Other comprehensive income for the half-year, net of tax Total comprehensive income for the half-year Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs Balance at 31 December 2015 Consolidated Balance at 1 July 2016 Loss after income tax benefit for the half-year Other comprehensive income for the half-year, net of tax Total comprehensive income for the half-year Transactions with owners in their capacity as owners: Share-based payment expense Balance at 31 December 2016	Issued capital $ 4,436,261 - -	Reserves $ 237,966 - -	Accumulated losses $ (2,787,732) (1,591,189) -	Total equity $ 1,886,495 (1,591,189) - (1,591,189) 1,401,000 1,696,306 Total equity $ 8,729,214 (2,959,123) - (2,959,123) 671,551 6,441,642
	- 1,401,000	- -	(1,591,189) -
	5,837,261	237,966	(4,378,921)
	Issued capital $ 15,773,846 - -	Reserves $ 397,911 - -	Accumulated losses $ (7,442,543) (2,959,123) -
	- -	- 671,551	(2,959,123) -
	15,773,846	1,069,462	(10,401,666)

The above statement of changes in equity should be read in conjunction with the accompanying notes

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Firstwave Cloud Technology Limited Statement of cash flows For the half-year ended 31 December 2016

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Firstwave Cloud Technology Limited Statement of cash flows For the half-year ended 31 December 2016
Cash flows from operating activities Receipts from customers (inclusive of GST) Payments to suppliers and employees (inclusive of GST) Interest received Interest and other finance costs paid Net cash used in operating activities Cash flows from investing activities Payments for property, plant and equipment Payments for intangibles Proceeds from release of security deposits Net cash used in investing activities Cash flows from financing activities Proceeds from issue of shares Share issue transaction costs Repayment of borrowings Net cash (used in)/from financing activities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at the beginning of the financial half-year Cash and cash equivalents at the end of the financial half-year Refer to note 1 for explanation on comparatives.	Consolidated 31 Dec 2016 31 Dec 2015 $ $ 3,518,473 2,471,203 (5,300,407) (3,978,493) 69,051 12,612 (13,555) (59,757) (1,726,438) (1,554,435) (180,220) (62,849) (569,963) (361,138) 46,310 - (703,873) (423,987) - 3,000,000 - (234,000) (173,277) (83,691) (173,277) 2,682,309 (2,603,588) 703,887 5,772,415 389,255 3,168,827 1,093,142
	(1,726,438)
	(180,220) (569,963) 46,310
	(703,873)
	- - (173,277)
	(173,277)
	(2,603,588) 5,772,415
	3,168,827

The above statement of cash flows should be read in conjunction with the accompanying notes

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Firstwave Cloud Technology Limited Notes to the financial statements 31 December 2016

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Note 1. Significant accounting policies

These general purpose financial statements for the interim half-year reporting period ended 31 December 2016 have been prepared in accordance with Australian Accounting Standard AASB 134 'Interim Financial Reporting' and the Corporations Act 2001, as appropriate for for-profit oriented entities. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 'Interim Financial Reporting'.

These general purpose financial statements do not include all the notes of the type normally included in annual financial statements. Accordingly, these financial statements are to be read in conjunction with the annual report for the year ended 30 June 2016 and any public announcements made by the company during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

The principal accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, unless otherwise stated.

New or amended Accounting Standards and Interpretations adopted

The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial performance or position of the consolidated entity during the financial half-year ended 31 December 2016 and are not expected to have any significant impact for the full financial year ending 30 June 2017.

Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

Results and comparative information

On 5 May 2016, Firstwave Cloud Technology Limited (previously known as Crestal Petroleum Limited ('Crestal')) acquired First Wave Technology Pty Ltd ('the legal subsidiary' or 'Firstwave'). For accounting purposes, the acquisition was accounted for as a share-based payment with the principles of reverse acquisition accounting applied.

The current half-year financial statements represent those of the consolidated entity comprising Firstwave and Crestal. The comparative period results reflect Firstwave results only.

Comparatives

Comparatives in the statement of profit or loss and other comprehensive income have been realigned to current period presentation. There has been no effect on the loss for the period.

Note 2. Operating segments

Identification of reportable operating segments

The consolidated entity operates in one segment being the development and sale of internet security software and located in Australia. This operating segment is based on the internal reports that are reviewed and used by the Board of Directors (who are identified as the Chief Operating Decision Makers ('CODM')) in assessing performance and in determining the allocation of resources.

The operating segment information is the same information as provided throughout the financial statements and are therefore not duplicated.

The information reported to the CODM is on a monthly basis.

Note 3. Revenue

Licensing and support revenue Professional services revenue Total revenue	Consolidated 31 Dec 2016 31 Dec 2015 $ $ 2,126,802 1,819,144 724,115 780,139 2,850,917 2,599,283
	2,850,917

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Firstwave Cloud Technology Limited Notes to the financial statements 31 December 2016

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Note 4. Other income

Research and development grant income Interest income Other income Note 5. Current assets - trade and other receivables Trade receivables Accrued revenue Other receivables Receivable from key management personnel Note 6. Non-current assets - intangibles Capitalised development costs - at cost Less: Accumulated amortisation Patents - at cost Less: Accumulated amortisation Note 7. Current liabilities - trade and other payables Trade payables Accrued expenses

Consolidated 31 Dec 2016 31 Dec 2015 $ $ 337,769 107,940 69,051 12,612 406,820 120,552 Consolidated 31 Dec 2016 30 Jun 2016 $ $ 1,548,754 1,545,268 727,237 855,881 970,027 36,130 221,520 221,520 3,467,538 2,658,799 Consolidated 31 Dec 2016 30 Jun 2016 $ $ 8,010,750 7,447,525 (5,717,794) (5,404,731) 2,292,956 2,042,794 77,026 70,288 (32,070) (25,070) 44,956 45,218 2,337,912 2,088,012 Consolidated 31 Dec 2016 30 Jun 2016 $ $ 1,496,587 593,984 1,126,907 1,306,766 2,623,494 1,900,750

2,623,494

Note 5. Current assets - trade and other receivables

Note 6. Non-current assets - intangibles

Note 7. Current liabilities - trade and other payables

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Firstwave Cloud Technology Limited Notes to the financial statements 31 December 2016

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Note 8. Current liabilities - other

Note 8. Current liabilities - other
Deferred research and development income Income received in advance Note 9. Non-current liabilities - other Deferred research and development income Income received in advance	Consolidated 31 Dec 2016 30 Jun 2016 $ $ 244,359 183,214 628,300 380,670 872,659 563,884 Consolidated 31 Dec 2016 30 Jun 2016 $ $ 575,072 372,636 676,616 301,446 1,251,688 674,082
	1,251,688

Note 10. Equity - dividends

There were no dividends paid, recommended or declared during the current or previous financial half-year.

Note 11. Fair value measurement

The carrying amounts of trade and other receivables and trade and other payable approximate their fair values due to their short term nature. The fair value of financial liabilities is estimated by discounting the remaining contractual maturities at the current market interest rate that is available for similar financial liabilities.

Note 12. Earnings per share

Note 12. Earnings per share
Loss after income tax attributable to the owners of Firstwave Cloud Technology Limited Weighted average number of ordinary shares used in calculating basic earnings per share Weighted average number of ordinary shares used in calculating diluted earnings per share Basic earnings per share Diluted earnings per share	Consolidated 31 Dec 2016 31 Dec 2015 $ $ (2,959,123) (1,591,189) Number Number 179,786,485108,759,800 179,786,485 108,759,800 Cents Cents (1.65) (1.46) (1.65) (1.46)
	Number 179,786,485
	179,786,485
	Cents (1.65) (1.65)

The weighted average number of ordinary shares for the comparative period has been adjusted to give effect to capital reorganisation which occurred during the previous financial year.

Options have been excluded in the weighted average number of shares used to calculate diluted earnings per share as they were anti-dilutive.

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Firstwave Cloud Technology Limited Notes to the financial statements 31 December 2016

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Note 13. Events after the reporting period

No matter or circumstance has arisen since 31 December 2016 that has significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years.

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Firstwave Cloud Technology Limited Directors' declaration 31 December 2016

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In the directors' opinion:

• the attached financial statements and notes comply with the Corporations Act 2001, Australian Accounting Standard AASB 134 'Interim Financial Reporting', the Corporations Regulations 2001 and other mandatory professional reporting requirements;

• the attached financial statements and notes give a true and fair view of the consolidated entity's financial position as at 31 December 2016 and of its performance for the financial half-year ended on that date; and

• there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of directors made pursuant to section 303(5)(a) of the Corporations Act 2001.

On behalf of the directors

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_____ _______ Alexander Kelton Steven O'Brien Chairman Managing Director 27 February 2017

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Level 17, 383 Kent Street Sydney NSW 2000

Correspondence to: Locked Bag Q800 QVB Post Office Sydney NSW 1230

T +61 2 8297 2400 F +61 2 9299 4445 E info.nsw@au.gt.com W www.grantthornton.com.au

Independent Auditor’s Review Report To the Members of Firstwave Cloud Technology Limited

We have reviewed the accompanying half-year financial report of Firstwave Cloud Technology Limited (“Company”), which comprises the consolidated statement of financial position as at 31 December 2016, and the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the half-year ended on that date, notes comprising a statement of accounting policies, other explanatory information and the directors’ declaration of the consolidated entity, comprising both the Company and the entities it controlled at the halfyear’s end or from time to time during the half-year.

Directors’ responsibility for the half-year financial report

The directors of Firstwave Cloud Technology Limited are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such controls as the Directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to express a conclusion on the consolidated half-year financial report based on our review. We conducted our review in accordance with the Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity’s financial position as at 31 December 2016 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the

Grant Thornton Audit Pty Ltd ACN 130 913 594

a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.

Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current scheme applies.

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auditor of Firstwave Cloud Technology Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we have complied with the applicable independence requirements of the Corporations Act 2001.

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Firstwave Cloud Technology Limited is not in accordance with the Corporations Act 2001, including:

• a giving a true and fair view of the consolidated entity’s financial position as at 31 December 2016 and of its performance for the half-year ended on that date; and

• b complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001.

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GRANT THORNTON AUDIT PTY LTD Chartered Accountants

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C F Farley Partner - Audit & Assurance

Sydney, 27 February 2017

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