FLEXIROAM LIMITED — Interim / Quarterly Report 2020

Jul 30, 2019

31 July 2019

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Quarterly update – June 2019

Flexiroam Limited (ASX:FRX), the global data solution provider, has published its Appendix 4C for the first quarter of FY2020, and advises:

Key Highlights:-

• Q1 FY2020 number of new subscribers grew 300% compared to Q1 FY2019

• Total number of subscribers exceeded the 320,000 mark in Q1 FY2020

• Q1 FY2020 cash receipts from sales is A$2,002,495 represents an increase of 35% compared to Q1FY2019

• Capital injection of A$0.77million (before costs) raised to support growth in business

Significant Subscribers Growth

Flexiroam’s strategy to market growth via various partnerships and direct marketing have yielded positive results in acquiring new subscribers in Q1 FY2020. During this quarter coverage were also extended to international travellers of major airlines and all these efforts have resulted in more than 61,000 new subscribers coming onboard Flexiroam. In tandem with Flexiroam’s continuous market growth over the past quarters, total subscribers have exceeded 320,000 at the end of Q1 FY2020.

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Continued Growth in Cash Receipts

Cash receipts grew by 35% in Q1 FY2020 compared to Q1 FY2019. Total cash sales receipts in Q1 FY2020 is A$2,002,495 (Q1 FY2019: A$1,484,423).

Investing into Business Growth

The acceleration of growth for Flexiroam’s business continues in Q1 FY2020 and every effort is made to ensure this momentum continues in a sustainable manner. During the quarter, the Company raised a total of A$0.77million through a share placement to support Flexiroam’s growth strategy and working capital needs. Net cash outflow from operating activities increased by 76% compared to the previous corresponding quarter mainly due to (1) significant demand of roaming data from our larger subscriber base thus resulting in higher payment for network utilisation, and (2) higher purchase of inventories for future growth.

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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

Flexiroam Limited	Flexiroam Limited
ABN		Quarter ended (“current	quarter”)
27 143 777 397		30 June 2019
Consolidated statement of cash flows			Year to date
		Current quarter	(3 months)
		$A’000	$A’000
1.	Cash flows from operating activities
1.1	Receipts from customers	2,002	2,002
1.2	Payments for
	(a) research and development	(95)	(95)
	(b) product manufacturing and operating
	costs	(944)	(944)
	(c) advertising and marketing	(922)	(922)
	(d) leased assets	-	-
	(e) staff costs	(182)	(182)
	(f) administration and corporate costs	(269)	(269)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	1	1
1.5	Interest and other costs of finance paid	(99)	(99)
1.6	Income taxes paid	-	-
1.7	Government grants and tax incentives	-	-
1.8	Other (provide details if material)	-	-
1.9	Net cash from / (used in) operating activities	(508)	(508)
2.	Cash flows from investing activities
2.1	Payments to acquire:
	(a) property, plant and equipment	(4)	(4)
	(b) businesses (see item 10)	-	-
	(c) investments	-	-

• See chapter 19 for defined terms 1 September 2016

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

Consolidated statement of cash flows	Consolidated statement of cash flows		Year to date
		Current quarter	(3 months)
		$A’000	$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 (provide details if material)	-	-
2.6	Net cash from / (used in) investing activities	(4)	(4)
3.	Cash flows from financing activities
3.1	Proceeds from issues of shares	775	775
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	(4)	(4)
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	771	771
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	528	528
4.2	Net cash from / (used in) operating activities (item 1.9 above)	(508)	(508)
4.3	Net cash from / (used in) investing activities (item 2.6 above)	(4)	(4)
4.4	Net cash from / (used in) financing activities (item 3.10 above)	771	771

• See chapter 19 for defined terms 1 September 2016

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

Consolidated statement of cash flows	Consolidated statement of cash flows		Year to date
		Current quarter	(3 months)
		$A’000	$A’000
4.5	Effect of movement in exchange rates on
	cash held	-	-
4.6	Cash and cash equivalents at end of quarter	787	787
5.	Reconciliation of cash and cash	Current quarter	Previous quarter
	equivalents	$A’000	$A’000
	at the end of the quarter (as shown in the
	consolidated statement of cash flows) to the
	related items in the accounts
5.1	Bank balances	787	528
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)	787	528
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		66
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

Director fees, consultancy fees, and salaries

7.	Payments to related entities of the entity and their	Current quarter
	associates	$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

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

8.	Financing facilities available	Total facility amount	Amount drawn at
	Add notes as necessary for an	at quarter end	quarter end
	understanding of the position	$A’000	$A’000
8.1	Loan facilities	-	-
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.
9.	Estimated cash outflows for next quarter		$A’000
9.1	Research and development		(159)
9.2	Product manufacturing and operating costs		(1,098)
9.3	Advertising and marketing		(1,626)
9.4	Leased assets		-
9.5	Staff costs		(192)
9.6	Administration and corporate costs		(307)
9.7	Other (provide details if material)		-
9.8	Total estimated cash outflows		(3,382)
10.	Acquisitions and disposals of	Acquisitions	Disposals
	business entities
	(items 2.1(b) and 2.2(b) above)
10.1	Name of entity	-	-
10.2	Place of incorporation or	-	-
	registration
10.3	Consideration for acquisition or	-	-
	disposal
10.4	Total net assets	-	-
10.5	Nature of business	-	-

• See chapter 19 for defined terms 1 September 2016

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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.

This statement gives a true and fair view of the matters disclosed.

Sign here: ............................................................ (Director/Company secretary)

Date: ............................................. 31 July 2019

Print name: ......................................................... Jefrey Ong

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

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