MICRO-X LIMITED — Interim / Quarterly Report 2017

Oct 30, 2017

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Micro-X Limited, 1284 South Road, Tonsley, South Australia, 5042

ABN: 21 153 273 735

Tuesday 31st October 2017

ASX Announcement – MICRO-X LIMITED (ASX: MX1)

QUARTERLY CASH FLOW & BUSINESS UPDATE

Micro-X Limited (ASX:MX1) is pleased to provide the attached Appendix 4C Quarterly Cash Flow report for the period ended 30[th] September 2017.

For a summary of the company’s business activities and key milestones achieved during the period, shareholders should refer to “2017 AGM Presentation,” lodged with ASX on 24[th] October 2017.

For further information please contact:

Mr Peter Rowland, Managing Director, Micro-X Ltd. Telephone: +61 418 844 981 prowland@micro-x.com www.micro-x.com

About Micro-X : Micro-X Limited (“ MX1 ”) is an Australian Securities Exchange listed company developing and commercialising a range of highly innovative products based on proprietary carbon nanotube emitter technologies exclusively licensed and sourced from XinRay Systems Inc., a US based technology developer. These technologies enable the miniaturisation of a number of X-ray applications relevant to large global markets.

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

Name of entity	Name of entity
Micro-X Ltd
Micro-X Ltd
ABN Quarter ended (“current quarter”) 21 153 273 735 30 September 2017
21 153 273 735	30 September 2017

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter	Year to date
		$A’000	(.......months)
			$A’000
1.	Cash flows from operating activities
1.1	Receipts from customers	36	36
1.2	Payments for
	(a) research and development	(4,309)	(4,309)
	(b) product manufacturing and operating	(441)	(441)
	costs
	(c) advertising and marketing	-	-
	(d) leased assets	-	-
	(e) staff costs	(483)	(483)
	(f) administration and corporate costs	(636)	(636)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	6	6
1.5	Interest and other costs of finance paid	(43)	(43)
1.6	Income taxes paid	-	-
1.7	Government grants and tax incentives	7,032	7,032
	(Research & Development Tax Incentive
	Refund)
1.8	Other (GST Refunds)	282	282
1.9	Net cash from / (used in) operating	1,444	1,444
	activities
2.	Cash flows from investing activities
2.1	Payments to acquire:
	(a) property, plant and equipment	(45)	(45)
	(b) businesses (see item 10)	-	-

• 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	Current quarter	Year to date
		$A’000	(.......months)
			$A’000
	(c) investments	-	-
	(d) intellectual property	(4)	(4)
	(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	(49)	(49)
	activities
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
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	5,573	5,573
4.2	Net cash from / (used in) operating	1,444	1,444
	activities (item 1.9 above)
4.3	Net cash from / (used in) investing activities	(49)	(49)
	(item 2.6 above)
4.4	Net cash from / (used in) financing activities	-	-
	(item 3.10 above)

• 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	Current quarter	Year to date
		$A’000	(.......months)
			$A’000
4.5	Effect of movement in exchange rates on	-	-
	cash held
4.6	Cash and cash equivalents at end of	6,968	6,968
	quarter

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	6,919		6,919
5.2	Call deposits		-	-
5.3	Bank overdrafts		-	-
5.4	Other (Term Deposit)		49	49
5.5	Cash and cash equivalents at end of	6,968		6,968
	quarter (should equal item 4.6 above)

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	(94)
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
Payments to Directors in relation to directors’ fees and salaries for the quarter.

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
N/A

• 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	3,000	3,000
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.

During Q1 2017, the company entered into a loan commitment with the South Australian Government Financing Authority, amounting to $3.0 million with an agreed interest rate of 5.75% per annum paid monthly in arrears.

9.	Estimated cash outflows for next quarter	$A’000
9.1	Research and development		3,095
9.2	Product manufacturing and operating costs		556
9.3	Advertising and marketing		-
9.4	Leased assets		54
9.5	Staff costs		573
9.6	Administration and corporate costs		406
9.7	Other (provide details if material)		-
9.8	Total estimated cash outflows		4,684

The estimated research and development outflows for the December 2017 quarter relate largely to accrued creditors.

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.

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

Sign here:

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............................................................

Date: 31 October 2017

(Director/Company secretary)

Print name: Georgina Carpendale

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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