FLEXIROAM LIMITED — Interim / Quarterly Report 2020

Nov 27, 2019

Flexiroam Limited and its Controlled Entities Half-year Report for period ending 30 September 2019

RULE 4.2A

APPENDIX 4D

Half-year Report for the period ending 30 September 2019

1. Name of entity

Flexiroam Limited and its Controlled Entities

ABN Reporting Period 27 143 777 397 Half year ended 30 September 2019 2. Results for Announcement to the Market	ABN Reporting Period 27 143 777 397 Half year ended 30 September 2019 2. Results for Announcement to the Market	Previous Corresponding Period Half year ended 30 September 2018
Financial Results % Increase / (Decrease) 30 Sep 2019 AUD		30 Sep 2018 AUD
Revenues from ordinary activities_(item 2.1) 70% Loss from ordinary activities after tax attributable to members (_item 2.2) -16% Net loss for the period attributable to members_(item 2.3)_ -16%	4,673,369 (942,844) (942,844)	2,747,022 (1,119,825) (1,119,825)
Final and interim dividends_(item 2.4)_	It is not proposed that dividend bepaid .	an interim
Record date for determining entitlements to the dividend_(item 2.5)_	N/A
Brief explanation of any of the figures reported above (item 2.6):	Refer to the attached Report for commentary on results.

3. NTA Backing

3. NTA Backing
	Current Period 30 Sep 2019	Previous Corresponding Period 30 Sep 2018
Net tangible assetsper ordinaryshare (Item 3)	(1.5) cents	(0.4) cents
4. Control gained over entities
Details of entities over which control has been gained or lost(item 4)	N/A
5. Dividends paid and payable
Details of dividends or distributionpayments_(item 5)_	No dividends or distributions arepayable.
6. Dividend reinvestment plans
Details of dividend or distribution reinvestment plans (item6)	There is no dividend reinvestment program in operation.
7. Details of associates
Details of associates andjoint venture entities_(item 7)_	N/A

Flexiroam Limited and its Controlled Entities Half-year Report for period ending 30 September 2019

8. Foreign entities

Foreign entities to disclose which accounting standards N/A are used in compiling the report (item 8)

9. Audit Review Opinion

Details of audit review that is subject to a modified opinion, emphasis of matter or other matter paragraph (item 9)

Emphasis of Matter – Material Uncertainty Related to Going Concern

The Audit Review Report contains an Emphasis of Matter relating to the ability of the Group to continue as a going concern, which is dependent on the Group achieving positive operating cash flows and/or securing additional funding through capital raising to continue to fund its operational and marketing activities.

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TABLE OF CONTENTS

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|DIRECTORS’ REPORT|01|
|AUDITOR’S INDEPENDENCE DECLARATION|04|
|CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME|05|
|CONSOLIDATED STATEMENT OF FINANCIAL POSITION|06|
|CONSOLIDATED STATEMENT OF CHANGES IN EQUITY|07|
|CONSOLIDATED STATEMENT OF CASH FLOWS|08|
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS|09|
|DIRECTORS’ DECLARATION|18|
|INDEPENDENT AUDITOR’S DECLARATION|19|
|CORPORATE INFORMATION|21|

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DIRECTORS’ REPORT

The Directors of Flexiroam Limited (‘ Flexiroam ’ or ‘the Company ’) and its controlled entities submit herewith their report together with the financial report of the Company and its controlled entities (‘ the Group ’) for the half-year ended 30 September 2019.

Directors

The Directors of the Company during or since the end of the half-year are:

• Jefrey Ong (appointed 18 March 2015)

• Tat Seng Koh (appointed 3 September 2018)

• Tuck Yin Choy (appointed 13 May 2019)

• Ong Thian Choy (appointed 1 October 2019)

• Dato’ Larry Gan Nyap Liou (appointed 18 November 2015, resigned 30 September 2019)

Company Secretary

• Kim Hogg (appointed 15 June 2016)

Principal Activities

The Group is involved in telecommunications. During the period in review the principal continuing activities consisted of development and provision of global connectivity solutions.

Financial Performance Review

Flexiroam continues to deliver its stated objective of increasing revenue and growing global customer base as shown in the results of its first-half performance, highlights as follows:

• Half-year revenue grew by +70% or equivalent to A$4.7m compared to A$2.7m from the same period last year.

• Group consolidated Income Statement recorded 24% improvement in EBITDA in 1H FY 2020 as compared to same period last year - a significant progress to breakeven.

• Cumulative subscribers continued to grow at a compounded growth rate of 38% every period of six months.

• Subsequent to half-year reporting period, the Group successfully carried out a Renounceable Entitlement Offer that raised A$1.26m to fund future business growth strategies and current working capital needs.

Revenue Growth aligns with EBITDA Improvement

The Group delivered a strong performance underpinned by solid revenue growth in the first half of FY 2020 by 70% compared to the same period last year. The Group generated A$ 4.7m in revenue during the current half-year. (1H FY 2019: A$ 2.7m).

This growth in revenue coupled with the optimisation of spending across the organization has resulted to EBITDA margin improvement of 24% compared to same period last year. Operating expenses (excluding depreciation & amortisation, finance expenses, and foreign exchange gain) decreased from 79% of revenue last half-year to 62% this current half-year. During Q2 FY 2020, the Group achieved its first profitable quarter with EBITDA recorded at A$ 0.26m attributable to the effective cost management in every line of operation, with significant improvement from selling and marketing optimisation and favorable impact from foreign exchange. Total foreign exchange gains registered during the 1H FY 2020 amounted to A$0.25m.

The Group has proven that its strategies to invest in future growth have yielded positive results. Flexiroam’s eSIM that was launched in early 2019 has continuously received very encouraging take-up from subscribers all over the world. With many other new features aiming at enhancing consumer experience currently in place, continuous cost management and optimisation efforts, combined with intensified sales and marketing activities, the Group is set to achieve high growth performance in the coming months.

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FLEXIROAM LIMITED

DIRECTORS’ REPORT

REVENUE & EBITDA (In A$’000s)

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1H FY2018 1H FY2019 1H FY2020
EBITDA (1,731) (927) (702)
REVENUE 1,084 2,747 4,673
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Significant Subscribers Growth

Flexiroam’s strategy to accelerate customer acquisition growth through the implementation of collaborative partnerships, and an increase in direct marketing activities has yielded positive results in acquiring new subscribers in 1H of FY2020. During this half-year, coverage was also extended to international travellers of major airlines and all these efforts have resulted in more than 116,000 new subscribers coming onboard which is a 170% increase from the previous corresponding half-year (1H FY2019: 43,000). The current partnerships with airlines and travel insurance providers provide Flexiroam with access to ‘primed’ customers from a pool of 35 million travellers.

Over the past two years, cumulative subscribers show an increasing trend with a compounded growth rate of 38% every six months. Continued focus on this customer acquisition strategy, along with public relations activities to raise awareness levels of the Group’s products and services in Australia is expected to deliver sustained growth in subscribers over the coming months.

CUMULATIVE SUBSCRIBERS

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376,000
260,000
174,000
131,000
103,000
1H FY2018 2H FY2018 1H FY2019 2H FY2019 1H FY2020
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Financial Report Sep 2019

DIRECTORS’ REPORT

Successful Capital Raising to Fund Future Growth Strategies

On 31 October 2019, the Company successfully completed a Renounceable Entitlement Offer by the issue of a total of 63,120,842 ordinary fully paid shares at an issue price of A$ 0.02 each with one attaching new option for each share issued. An additional of 2,500,000 listed options were also issued as consideration for the lead manager services. Total funds raised for this entitlement issue amounted to A$1.26m which will be applied to product sales and marketing, research and development and other working capital needs of the Company.

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 on page 4.

Signed in accordance with a resolution of directors made pursuant to s.306 (3)(a) of the Corporations Act 2001.

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Jefrey Ong Chief Executive Officer Signed on this 28[th] day in November 2019

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AUDITOR’S INDEPENDENCE DECLARATION

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Financial Report Sep 2019

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 30 SEPTEMBER 2019

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HALF-YEAR HALF-YEAR
ENDED ENDED
NOTES
30 SEP 2019 30 SEP 2018
$ $
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Revenue 2 Cost of sales Gross proft / (loss) Interest received Foreign exchange gains Other income Administration and operating expenses Selling and marketing expenses Research and development Staf costs Depreciation and amortisation Finance expenses Loss before income tax Income tax expense Loss for the period Other comprehensive loss Items that may be re-classifed to proft or loss: Foreign exchange translation Revaluation of available-for-sale assets Total other comprehensive loss, net of tax Total comprehensive loss for the period Loss per share (basic and diluted)	(Restated) 4,673,369 2,747,022 (2,744,702) (1,495,730)
	1,928,667 1,251,292
	891 1,731 254,065 4,317 326 50 (370,118) (356,298) (1,879,812) (1,337,072) (202,126) (215,603) (433,135) (273,238) (30,653) (38,024) (210,949) (156,980)
	(942,844) (1,119,825) - -
	(942,844) (1,119,825)
	(456,207) (109,690) - -
	(456,207) (109,690)
	(1,399,051) (1,229,515)
	(0.4) cents (0.6) cents

The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes.

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2019

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AS AT AS AT
NOTES 30 SEP 2019 31 MAR 2019
$ $
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CURRENT ASSETS Cash and cash equivalents Trade and other receivables Inventory 3 Other assets 4 Total current assets NON-CURRENT ASSETS Plant and equipment Total non-current assets Total Assets CURRENT LIABILITIES Trade and other payables 5 Deferred revenue 6 Borrowings Total current liabilities NON-CURRENT LIABILITIES Borrowings Total non-current liabilities Total Liabilities Net Assets EQUITY Issued capital 7 Reserves Accumulated losses Total equity	268,219 528,017 193,582 315,075 63,014 219,807 186,738 2,726
	711,553 1,065,625
	99,094 116,980
	99,094 116,980
	810,647 1,182,605
	2,776,570 2,148,774 1,656,774 2,065,205 15,497 15,507
	4,448,841 4,229,486
	44,856 11,875
	44,856 11,875
	4,493,697 4,241,361
	(3,683,050) (3,058,756)
	38,203,896 37,429,139 (2,657,500) (2,203,856) (39,229,446) (38,284,039)
	(3,683,050) (3,058,756)

The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.

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Financial Report Sep 2019

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 30 SEPTEMBER 2019	ISSUED CAPITAL $ OPTION AND PERFORMANCE RIGHTS RESERVE $ FOREX TRANSLATION RESERVE $ ACCUMULATED LOSSES $ TOTAL $ Balance at 1 Apr 2018 36,268,139 299,993 (2,489,914) (34,814,379) (736,161) Impact of prior period error and changes in accounting standard - - 469,356 (592,741) (123,385) Adjusted balance at 1 April 2018 36,268,139 299,993 (2,020,558) (35,407,120) (859,546) Loss for the period - - - (1,119,825) (1,119,825) Other comprehensive loss for the period - - (109,690) - (109,690) Total comprehensive loss for the period - - (109,690) (1,119,825) (1,229,515) Capital issued during the period 1,161,000 - - - 1,161,000 Balance at 30 Sep 2018 (Restated) 37,429,139 299,993 (2,130,248) (36,526,945) (928,061) Balance at 1 Apr 2019 37,429,139 299,993 (2,503,849) (38,284,039) (3,058,756) Impact of prior period error and changes in accounting standards - - 2,563 (2,563) - Adjusted balance at 1 April 2019 37,429,139 299,993 (2,501,286) (38,286,602) (3,058,756) Loss for the period - - - (942,844) (942,844) Other comprehensive loss for the period - - (456,207) - (456,207) Total comprehensive loss for the period - - (456,207) (942,844) (1,399,051) Capital issued during the period 774,757 - - - 774,757 Balance at 30 Sep 2019 38,203,896 299,993 (2,957,493) (39,229,446) (3,683,050)
	TOTAL $
	ACCUMULATED LOSSES $
	FOREX TRANSLATION RESERVE $
	OPTION AND PERFORMANCE RIGHTS RESERVE $
	ISSUED CAPITAL $

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CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 30 SEPTEMBER 2019

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HALF-YEAR HALF-YEAR
NOTES ENDED ENDED
30 SEP 2019 30 SEP 2018
$ $
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Cash Flows from Operating Activities Receipts from customers Payments to suppliers and employees Interest paid Interest received Net cash fows used in operating activities Cash Flows from Investing Activities Purchase of plant and equipment Net cash fows used in investing activities Cash Flows from Financing Activities Advances from related parties Proceeds from issue of share capital Borrowings – payments Net cash fows provided by fnancing activities Net (decrease) / increase in cash and cash equivalents Cash and Cash Equivalents at the beginning of the period Foreign exchange fuctuations on opening cash balances Cash and Cash Equivalents at the end of the period	(Restated) 4,259,889 3,466,094 (5,112,986) (3,558,178) (210,949) (156,980) 891 1,731
	(1,063,155) (247,333)
	(10,591) (3,979)
	(10,591) (3,979)
	40,207 54,083 774,757 1,161,000 (8,049) (7,413)
	806,915 1,207,670
	(266,831) 956,358
	528,017 700,000 7,033 (103,904)
	268,219 1,552,454

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.

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Financial Report Sep 2019

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

Statement of Compliance

This consolidated interim financial report includes the financial statements and notes of Flexiroam Limited (“the Company”) and its subsidiaries Flexiroam Sdn Bhd and Flexiroam Asia Limited (collectively “the Group”). The Group is a for-profit entity primarily and is domiciled in Australia.

This half-year consolidated financial statements are general purpose financial statements prepared in accordance with the requirements of the Corporations Act 2001, applicable accounting standards including AASB 134 ‘Interim Financial Reporting’, Accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board (‘AASB’). Compliance with AASB 134 ensures compliance with IAS 34 ‘Interim Financial Reporting’.

This consolidated interim financial report does not include full disclosures of the type normally included in an annual financial report. Therefore, it cannot be expected to provide as full an understanding of the financial performance, financial position and cash flows of the Group as in the full financial report.

It is recommended that this financial report be read in conjunction with the annual financial report for the year ended 31 March 2019 and any public announcements made by the Company and its subsidiaries during the half-year in accordance with continuous disclosure requirements arising under the Corporations Act 2001 and the ASX Listing Rules.

Prior Period Restatement

Restatements have been made to prior period financial statements due to the following:

• Recognition of an additional unrealized foreign exchange gain of $29,199 in the profit or loss as a result an adjustment to the unrealized foreign exchange gain or loss in prior year for the effects of changes in foreign exchange of intercompany accounts within the group.

• Recognition of additional revenue from expected breakage in proportion to the pattern of rights exercised by the customer amounting to $148,728.

• Adjustment to correct expenses amounting to $53,467 incurred during the year ended 31 March 2018 but was recorded during half-year ended 30 September 2018.

Basis of Preparation

The consolidated interim financial report has been prepared on an accrual basis and is based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.

The functional currency of the Company and subsidiary are measured using the currency of the primary economic environment in which the Company and subsidiaries operates; being Australian Dollars, Malaysian Ringgit and US Dollar respectively. However, as the majority of the Company’s shareholder base is Australian, these financial statements are presented in Australian Dollars.

For the purpose of preparing the half-year financial report, the half-year has been treated as a discrete reporting period and does not include full disclosures of the type normally included in an annual financial report.

Accounting Policies and Methods of Computation

The accounting policies and methods of computation adopted are consistent with those of the previous financial year and corresponding half-year. The accounting policies are consistent with Australian Accounting Standards and with International Financial Reporting Standards.

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FLEXIROAM LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Adoption of New and Revised Australian Accounting Standards

Standards and Interpretations applicable to 30 September 2019

In the half-year ended 30 September 2019, the Directors have reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to the Company and effective for the current half-year reporting period.

As a result of this review, the Directors have determined that there is no material impact of the new and revised Standards and Interpretations on the Company and, therefore, no material change is necessary to Group accounting policies.

Significant Accounting Judgments and Key Estimates

The preparation of half-year financial report requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expense. Actual results may differ from these estimates.

In preparing this half-year financial report, the significant judgments made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial report for the year ended 31 March 2019.

Going Concern

These financial statements have been prepared on the going concern basis, which contemplates the continuity of normal business activities and the realisation of assets and settlement of liabilities in the normal course of business.

As disclosed in the financial statements, the Group incurred an operating loss of $942,844 for the half-year ended 30 September 2019 (30 September 2018 loss: $1,119,825) and a net cash outflow from operating activities amounting to $1,063,155 (30 September 2018 outflow: $247,333). The ability of the Group to continue as a going concern is dependent on the Group achieving positive operating cash flows and/or securing additional funding through capital raising to continue to fund its operational and marketing activities. These conditions indicate the existence of a material uncertainty that may cast significant doubt about the Group’s ability to continue as going concern.

The Directors are satisfied that the going concern basis of preparation is appropriate and there are reasonable grounds to believe that the Group will continue as a going concern due to the following factors:

• The Directors have received undertakings of financial support from the Group’s major shareholders to assist it in meeting its financial obligations as when they fall due;

• The Directors are confident in the outlook of improved financial performance of the business to deliver future profitable operations; and/or

• The Company is able to raise further capital based on historical success.

Should the Group not be able to continue as a going concern, it may be required to realise its assets and discharge its liabilities other than in the ordinary course of business, and at amounts that differ from those stated in the financial statements. The financial report does not include any adjustments relating to the recoverability and classification of recorded asset amounts or liabilities that might be necessary should the Group not continue as a going concern.

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Financial Report Sep 2019

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 REVENUE

	HALF-YEAR ENDED 30 SEP 2019 $	HALF-YEAR ENDED 30 SEP 2018 $
Corporate[a] Consumer[b]	(Restated) 695,790 345,635 3,977,579 2,401,387
	4,673,369 2,747,022

[a] Corporate sales consist of business to business transactions involving local and foreign travel agencies.

[b] Consumer sales consist of business to consumer transactions involving local and foreign travellers.

NOTE 3 INVENTORY

	AS AT 30 SEP 2019 $	AS AT 31 MAR 2019 $
Opening balance Purchases Distribution Closing balance	219,807 13,644 7,604 1,097,190 (164,397) (891,027)
	63,014 219,807

The inventory refers to microchip and sim cards.

NOTE 4 OTHER ASSETS

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AS AT AS AT
30 SEP 2019 31 MAR 2019
$ $
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Prepayments Reconciliation Opening balance Net additions Closing balance	186,738 2,726
	186,738 2,726
	2,726 63,551 184,012 (60,825)
	186,738 2,726

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 5 TRADE AND OTHER PAYABLES

	AS AT 30 SEP 2019 $	AS AT 31 MAR 2019 $
Trade payables Accruals	2,566,322 1,890,419 210,248 258,355
	2,776,570 2,148,774

Trade payables are non-interest bearing and are normally settled within 30 to 90 days.

NOTE 6 DEFERRED REVENUE

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AS AT AS AT
30 SEP 2019 31 MAR 2019
$ $
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Corporate sales Consumer sales Reconciliation Opening balance Adjustment related to adoption of AASB 15 Net additions Foreign exchange translation efects Closing balance	649,964 1,067,929 1,006,810 997,276
	1,656,774 2,065,205
	2,065,205 791,917 - 69,840 (511,788) 1,131,237 103,357 72,211
	1,656,774 2,065,205

Advance billing to customers that give rise to provisions for unearned revenue in respect of services which have not been rendered as at the end of the reporting period.

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Financial Report Sep 2019

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 7 ISSUED CAPITAL

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NUMBER OF
$
SHARES
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	NUMBER OF SHARES $
Ordinary shares issued (net of share issue costs) Reconciliation Balance at 1 April 2018 Share issue - 22 August 2018[a] Balance at 30 September 2018 Balance at 1 April 2019 Share issue – 3 May 2019[b] Balance at 30 September 2019	242,083,451 38,203,896
	193,689,501 36,268,139 29,025,000 1,161,000
	222,714,501 37,429,139
	222,714,501 37,429,139 19,368,950 774,757
	242,083,451 38,203,896

• [a] On 22 August 2018, the Company successfully completed a capital raising of $1.16m by the issue of 29,025,000 ordinary fully paid shares at an issue price of $0.04 each. The Placement is within the Company’s 15% share issue capacity under ASX Listing Rule 7.1.

• [b] On 3 May 2019, the Company successfully completed a capital raising of $0.77m by the issue of 19,368,950 ordinary fully paid shares at an issue price of $0.04 each. The placement has been made to an investor qualifying under Section 708 of the Corporations Act and the Company has used its existing issuance capacity under the ASX Listing Rule 7.1A to complete the issue. The investor is not a related party of the Company.

Fully paid ordinary shares carry one vote per share and carry the right to dividends. Ordinary shares participate in dividends and the proceeds on winding up of the Company in proportion to the number of shares held. At the shareholders’ meetings each ordinary share is entitled to one vote when a poll is called, otherwise each shareholder has one vote on a show of hands.

Dividends

No dividends were paid or proposed during the half-year ended 30 September 2019 (31 March 2019: nil)

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FLEXIROAM LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 8 SEGMENT REPORTING

AASB 8 Operating Segments requires operating segments to be identified on the basis of internal reports about the components of the group that are regularly reviewed by the chief operating decision maker in order to allocate resources to the segment and to assess its performance.

The Group’s operating segments have been determined with reference to the monthly management accounts used by the chief operating decision maker to make decisions regarding the Company’s operations and allocation of working capital. Due to the size and nature of the Group, the Board as a whole has been determined as the chief operating decision maker.

During the current half-year, the Group changed the geographical segment presentation in order to provide a more meaningful and useful information to the chief operating decision maker.

As at 30 September 2019, the Group operated in one business segment being the telecommunication business segment and 6 geographical market segments, namely the telecommunications market in Africa, Asia, Europe, North America, South America, Oceania and Antarctica.

During the current period, the chief decision makers have been reviewing operations and making decisions based on the supply and provision of telecommunications as a single operating unit. Internal management accounts are consequently prepared on this basis.

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Financial Report Sep 2019

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

TOTAL $	HALF-YEAR ENDED 30 SEP 2019 Revenue Corporate - 437,457 103,356 40,515 105,657 8,805 - 695,790 Consumer 107,595 2,563,444 378,407 400,599 410,699 116,835 - 3,977,579 Total segment and group revenue 107,595 3,000,901 481,763 441,114 516,356 125,640 - 4,673,369 Segment and group cost of sales (63,192) (1,762,450) (282,942) (259,069) (303,260) (73,789) - (2,744,702) Other income and forex loss - - - - - - 255,282 255,282 Administration and operating expenses - - - - - - (3,096,140) (3,096,140) Depreciation and amortisation - - - - - - (30,653) (30,653) Group proft / (loss) for the period 44,403 1,238,451 198,821 182,045 213,096 51,851 (2,871,511) (942,844) Net cash operating fows 41,263 1,150,833 184,754 169,165 198,021 48,182 (2,855,373) (1,063,155) Net cash investing fows - - - - - - (10,591) (10,591) Net cash fnancing fows - - - - - - 806,915 806,915 Net cash infow / (outfow) 41,263 1,150,833 184,754 169,165 198,021 48,182 (2,059,049) (266,831) AS AT 30 SEP 2019 Assets 18,663 520,539 83,567 76,516 89,568 21,794 - 810,647 Liabilities 103,459 2,885,529 463,241 424,154 496,504 120,810 - 4,493,697
UNALLOCA- TED $
OCEANIA & ANTARCTICA $
SOUTH AMERICA $
NORTH AMERICA $
EUROPE $
ASIA $
AFRICA $

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FLEXIROAM LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

TOTAL $	HALF-YEAR ENDED 30 SEP 2018 Revenue Corporate 66,267 134,934 22,764 10,067 108,081 3,522 - 345,635 Consumer 51,294 1,557,146 204,538 213,869 302,270 72,270 - 2,401,387 Total segment and group revenue 117,560 1,692,080 227,302 223,936 410,352 75,792 - 2,747,022 Segment and group cost of sales (64,011) (921,323) (123,764) (121,931) (223,433) (41,268) - (1,495,730) Other income and forex loss - - - - - - 6,098 6,098 Administration and operating expenses - - - - - - (2,339,191) (2,339,191) Depreciation and amortisation - - - - - - (38,024) (38,024) Group proft / (loss) for the period 53,550 770,757 103,538 102,005 186,919 34,524 (2,371,117) (1,119,825) Net cash operating fows 77,974 1,122,300 150,762 148,529 272,173 50,271 (2,069,342) (247,333) Net cash investing fows - - - - - - (3,979) (3,979) Net cash fnancing fows - - - - - - 1,207,670 1,207,670 Net cash infow / (outfow) 77,974 1,122,300 150,762 148,529 272,173 50,271 (865,651) 956,357 AS AT 31 MAR 2019 Assets 50,610 728,448 97,854 96,405 176,658 32,630 - 1,182,605 Liabilities 181,511 2,612,546 350,951 345,754 633,577 117,022 - 4,241,361
UNALLOCA- TED $
OCEANIA & ANTARCTICA $
SOUTH AMERICA $
NORTH AMERICA $
EUROPE $
ASIA $
AFRICA $

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FLEXIROAM LIMITED

Financial Report Sep 2019

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 9 FINANCIAL INSTRUMENTS

The accounting policies and methods of computation adopted are consistent with those of the previous year and corresponding half-year.

The Directors consider that the carrying value of the financial assets and financial liabilities as recognised in the consolidated financial statements approximate their fair values.

NOTE 10 SIGNIFICANT EVENTS AFTER 30 SEPTEMBER 2019

Except for the events described below, there were no matters or circumstances arising since the end of the reporting period that have significantly affected, or may significantly affect the operations of the Group or the state of affairs of the Group in the financial period subsequent to 30 September 2019.

On 1 October 2019, Mr Ong Thian Choy (David) was appointed as a Non-Executive Director.

On 31 October 2019, the Company successfully completed a Renounceable Entitlement Offer by the issue of a total of 63,120,842 ordinary fully paid shares at an issue price of $0.02 each with one attaching new option for each share issued. An additional of 2,500,000 listed options were also issued as consideration for the lead manager services. The options form a new class of quoted securities (ASX: FRXO) exercisable at $0.12 each and expiring on 31 October 2022. Total funds raised for this entitlement issue amounted to $1.26m.

NOTE 11 COMMITMENTS AND CONTINGENCIES

There has been no change in contingent liabilities and commitments since the last annual reporting date.

NOTE 12 RELATED PARTY TRANSACTIONS

Transactions with related parties

	AS AT 30 SEP 2019 $	AS AT 31 MAR 2019 $
Amounts due to directors 178,674 164,746

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Financial Report Sep 2019

FLEXIROAM LIMITED

DIRECTORS’ DECLARATION

In the opinion of the Directors of the Group:

1. The attached financial statements and notes thereto are in accordance with the Corporations Act 2001 including:

2. a. complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and

3. b. giving a true and fair view of the Group’s financial position as at 30 September 2019 and of its performance for the half-year then ended; and

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

This declaration is signed in accordance with a resolution of the Board of Directors made pursuant to s.303(5) of the Corporations Act 2001 .

On behalf of the Board

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Jefrey Ong Director Signed on this 28[th] day in November 2019

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Financial Report Sep 2019

INDEPENDENT AUDITOR’S REPORT

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FLEXIROAM LIMITED

INDEPENDENT AUDITOR’S REPORT

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FLEXIROAM LIMITED

Financial Report Sep 2019

CORPORATE INFORMATION

This half-year report is for Flexiroam Limited and its controlled entities. Unless otherwise stated, all amounts are presented in $AUD.

DIRECTORS COMPANY SECRETARY REGISTERED OFFICE PRINCIPAL PLACE OF BUSINESS AUDITORS BANKERS SOLICITORS SHARE REGISTRY SECURITIES EXCHANGE LISTING WEBSITE CONTACT INFORMATION

Jefrey Ong Tat Seng Koh Tuck Yin Choy Ong Thian Choy Kim Hogg 79 Broadway, NEDLANDS WA 6009 22-2 Jalan PJU 8/3A, Bandar Damansara Perdana, 47820, Petaling Jaya, Selangor D.E., Malaysia Crowe Sydney Level 15 1 O’Connell Street Sydney NSW 2000 National Australia Bank 100 St Georges Terrace, PERTH WA 6000 Dean & Co. Lot 1, Aman Kiara, No. 1, Jalan Kiara 5 Mont Kiara, 50480, Kuala Lumpur, Malaysia Advanced Share Registry 110 Stirling Highway, NEDLANDS WA 6009 Ph : 08 9389 8033 Fax : 08 9262 3723 Flexiroam Limited shares are listed on the Australian Securities Exchange (ASX code : FRX) www.fexiroam.com Ph : +61281883919 Email :investor@fexiroam.com

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Financial Report Sep 2019

FLEXIROAM LIMITED