PAINCHEK LTD — Interim / Quarterly Report 2021

Jul 28, 2021

Appendix 4C

+Rule 4.7B

Quarterly cash flow report for entities subject to Listing Rule 4.7B

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Name of entity
PAINCHEK LTD
ABN Quarter ended (“current quarter”)
21146035127 30/06/2021
Year to date
Consolidated statement of cash flows Current quarter $A’000
(12 months) $A'000
1.0 Cash flows from operating activities
1.1 Receipts from customers 107 323
Receipt of Government Grant revenue
1.2 Payments for
(a) research and development (418) (1,562)
(b) product manufacturing and operating costs
(c) advertising and marketing (191) (835)
(d) leased assets
(e) staff costs (2,445) (3,934)
(f) administration and corporate costs 996 (519)
1.3 Dividends received (see note 3)
1.4 Interest received 0 10
1.5 Interest and other costs of finance paid
1.6 Income taxes paid
1.7 Government grants and tax incentives 1,353 2,356
1.8 Other (GST) 115 (8)
1.9 Net cash from / (used in) operating activities (483) (4,168)
Note that $1,250,000 was received for the Federal Government Grant in advance in June 2020
2.0 Cash flows from investing activities
2.1 Payments to acquire:
(a) entities
(b) businesses
(c) property, plant and equipment (17) (60)
(d) investments
(e) intellectual property
(f) other non-current assets
2.2 Proceeds from disposal of:
(a) entities
(b) businesses
(c) property, plant and equipment
(d) investments
(e) intellectual property
(f) 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 (17) (60)
3.0 Cash flows from financing activities
3.1 Proceeds from issues of equity securities 0 10,000
(excluding convertible debt securities)
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3.2 Proceeds from issue of convertible debt securities
3.3 Proceeds from exercise of options 0 0
3.4 Transaction costs related to issues of equity securities or convertible debt securities 0 (500)
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 0 9,500
4.0 Net increase / (decrease) in cash and
cash equivalents for the period
4.1 Cash and cash equivalents at beginning of 11,910 6,120
quarter/year to date
4.2 Net cash from / (used in) operating activities (483) (4,168)
(item 1.9 above)
4.3 Net cash from / (used in) investing activities (17) (60)
(item 2.6 above)
4.4 Net cash from / (used in) financing activities 0 9,500
(item 3.10 above)
4.5 Effect of movement in exchange rates on cash 1 19
held
4.6 Cash and cash equivalents at end of quarter 11,411 11,411
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Reconciliation of cash and cash
Current quarter Previous quarter
equivalents
5.0 at the end of the quarter (as shown in the
consolidated statement of cash flows) to the $A’000 $A’000
related items in the accounts
5.1 Bank balances 3,372 3,871
5.2 Call deposits 8,039 8,039
5.3 Bank overdrafts
5.4 Other (provide details)
5.5 Cash and cash equivalents at end of quarter 11,411 11,910
(should equal item 4.6 above)
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Current quarter
6.0 Payments to related entities of the entity and their associates
$A'000
6.1 Aggregate amount of payments to related parties and their associates
included in item 1 106
6.2 Aggregate amount of payments to related parties and their associates
included in item 2
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Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments

7.0	Financing facilities available Total facility amount at quarter end Add notes as necessary for an understanding of the position $A’000	Amount drawn at quarter end $A’000
7.1	Loan facilities
7.2	Credit standby arrangements
7.3	Other (please specify)
7.4	Total financing facilities
7.5	Unused financing facilities available at quarter end
	Include in the below a description of each facility above, including the lender, interest rate, maturity
7.6	date 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 a note providing details of those facilities as
	well.

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8.0 Estimated cash available for future operating activities $A’000
8.1 Net cash from / (used in) operating activities (item 1.9) (483)
8.2 Cash and cash equivalents at quarter end (item 4.6) 11,411
8.3 Unused finance facilities available at quarter end (item 7.5) 0
8.4 Total available funding (Item 8.2 + Item 8.3) 11,411
8.5 Estimated quarters of funding available (Item 8.4 divided by Item 8.1)
24
8.6 If Item 8.5 is less than 2 quarters, please provide answers to the following questions:
Does the entity expect that it will continue to have the current level of net operating cash flows for the
1
time being and, if not, why not?
Answer:
Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its
2
operations and, if so, what are those steps and how likely does it believe that they will be successful?
Answer:
Does the entity expect to be able to continue its operations and to meet its business objectives and, if
3
so, on what basis?
Answer:
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Compliance statement

This statement has been prepared in accordance with accounting standards and policies which comply with 1 Listing Rule 19.11A.

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

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Date: 28/07/2021
Authorised by: By the board
(Name of body or officer authorising release - see note 4)
Notes
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The quarterly report and the accompanying activity report provides a basis for informing the market how the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash 1 position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

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 2 prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.

Dividends received may be classified either as cash flows from operating activities or cash flows from investing 3 activities, depending on the accounting policy of the entity.

If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board. If it has been authorised for release to the market by a committee of your board of directors, you can insert 4 her: "By the [name of board committee - eg Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".

If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Coucils Corporate governance Principles and Recommendations, the board should have received a declaration from its CEO and 5 CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash fows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.