PHARMX TECHNOLOGIES LIMITED — Interim / Quarterly Report 2021

Jul 29, 2021

Corum Group Limited ABN 25 000 091 305 Level 3, 120 Sussex Street, Sydney NSW 2000 www.corumgroup.com.au

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Market Release

30 July 2021

ASX Announcement

Quarterly Activity Report and Appendix 4C 30 June 2021

Principal Activities

Corum Group Limited (ASX:COO) is a technology and software development company. The key business activities relate to Corum Health which develops and distributes business software for the pharmacy industry with emphasis on point-of-sale and pharmaceutical dispensing software, multi-site retail management, support services and computer hardware. Corum Health now also includes PharmX, an electronic gateway that links pharmacies, pharmaceutical wholesalers and direct suppliers within the pharmacy market. Corum eCommerce operates a payment gateway primarily for the real estate and pharmacy sectors.

Key Highlights during the June 2021 Quarter

• Organisational restructure including key new hires to strengthen senior management capability

• Operating cashflow up 38% QoQ excluding redundancies

• Closing cash balance of $6.5m

Key Activities during the June 2021 Quarter

Quarter review

During the quarter there was a restructure of the organisation which has enabled the company to build a more effective and appropriate structure for future growth. This restructure also included a number of people changes, notably;

• James Nevile joined Corum as Chief Operating Officer. James joins Corum from Fred IT where he oversaw the highly successful e-prescribing roll-out. James, a pharmacist by training, will bring a wealth of experience to our team

• Eric Moschietto-Fransa has joined Corum Group to lead the PharmX sales team. Eric is an experienced sales professional with a deep understanding of the pharmacy market and his previous roles include L’Oreal and PZ Cussons.

• Zoe Hillier has been promoted from Financial Controller to Chief Financial Officer. Zoe has worked in the business for 2 years and had led the finance team for over 12 months.

These changes bolster our internal capabilities and add significant and relevant experience to our senior leadership team.

This restructure resulted in one off redundancy costs of $434,000 incurred in the quarter which impacted the reported operating cashflow of $341,000. The operating cashflow for the quarter excluding these restructuring payments was $775,000. This is an increase of $213,000 (38%) on the previous quarter.

Cash receipts during the quarter were $3,599,000, a small decline from Q3. During the period we continued our product rationalization strategy and discontinued one of our legacy dispensing products, Amfac (AWD). Consequently, there was some customer churn in migrating these customers to our newer, higher value products. Our e-commerce division experienced a marginal decline of c. $30k in the quarter.

Our product strategy progressed and development continued on our newest offering, Corum Clear Suite. This includes, Corum Clear Enterprise (our new head office system), Corum Clear Dispense and Corum Clear Retail. In May, the Corum Clear Suite was showcased at the Australian Pharmacy Professional (APP) Conference. These interactive demonstrations held with groups and pharmacy owners were well received and offered an opportunity to gain further customer insights and importantly, a number of new business opportunities.

There has been a continued focus on our support and deployment business units where we have replatformed our internal systems. This will allow the business to continue to improve our organisational processes, internal efficiencies and most importantly, improve customer interactions that will support future growth.

PharmX network growth continues with five new integration partners added to the platform in the quarter. Platform utilisation by pharmacy grew 2.8% in the quarter and is indicative of increasing awareness and adoption of the platform and its services by pharmacy. Platform stability and delivery performance remains high with 100% system uptime.

Corum ended the quarter with a cash balance of $6.5 million.

Payments to related parties of the entity and their associates

During the quarter, $183,000 was paid in fees and salaries to Directors, Key Management Personnel and their related entities.

- ENDS -

This notice has been authorised for release to the ASX by the Board of the Company.

For further information contact: Julian Sallabank, Managing Director

Investor email: companysecretary@corum.com.au

About Corum Group

Corum Group Limited [ASX:COO] (Corum) is an Australian company limited by shares that owns businesses in technology and software development.

For more than 30 years Corum has been using its deep industry expertise and extensive relationships to develop Point-Of-Sale, Dispensing and Management software for pharmacy head offices and retail stores and a range of eCommerce and ordering solutions throughout Australia.

Corum is determined to offer the best solutions to its customers through the products, services and processes of each of its businesses.

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Corum Group | Corum Health | Corum eCommerce | PharmX corumgroup.com.au
Sydney | Melbourne | Perth | Brisbane | Adelaide
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Rule 4.7B

Appendix 4C

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

Name of entity

Corum Group Limited

ABN		Quarter ended (“current quarter”)	Quarter ended (“current quarter”)
25 000 091 305		30 June 2021
Consolidated statement of cash flows		Current quarter	Year to date (12
		$A’000	months)
			$A’000
1.	Cash flows from operating activities
1.1	Receipts from customers	3,599	13,887
1.2	Payments for
	(a) research and development	-	-
	(b) product manufacturing and operating	(617)	(2,434)
	costs
	(c) advertising and marketing	(62)	(217)
	(d) leased assets	-	-
	(e) staff costs	(1,994)	(7,384)
	(f) administration and corporate costs	(327)	(1,472)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	8	33
1.5	Interest and other costs of finance paid	-	-
1.6	Income taxes paid	-	(272)
1.7	Government grants and tax incentives	-	1,973
1.8	Other (provide details if material)	(266)	(952)
1.9	Net cash from / (used in) operating	341	3,162
	activities
2.	Cash flows from investing activities
2.1	Payments to acquire or for:
	(a) entities	-	-
	(b) businesses	-	-
	(c) property, plant and equipment	(45)	(300)
	(d) investments	-	(8,072)
	(e) intellectual property	(803)	(3,789)
	(f) other non-current assets	8	-

ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter	Year to date (12
		$A’000	months)
			$A’000
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 (cash on acquisition of subsidiary)	-	5,975
2.6	Net cash from / (used in) investing	(840)	(6,186)
	activities
3.	Cash flows from financing activities
3.1	Proceeds from issues of equity securities
	(excluding convertible debt securities)	-	8,544
3.2	Proceeds from issue of convertible debt	-	-
	securities
3.3	Proceeds from exercise of options	-	-
3.4	Transaction costs related to issues of	-	-
	equity securities or convertible debt
	securities
3.5	Proceeds from borrowings	-	-
3.6	Repayment of borrowings	-	-
3.7	Transaction costs related to loans and	-	-
	borrowings
3.8	Dividends paid	-	(896)
3.9	Other (provide details if material)	(118)	(469)
3.10	Net cash from / (used in) financing	(118)	7,179
	activities
4.	Net increase / (decrease) in cash and
	cash equivalents for the period
4.1	Cash and cash equivalents at beginning of
	period	7,095	2,323
4.2	Net cash from / (used in) operating	341	3,162
	activities (item 1.9 above)
4.3	Net cash from / (used in) investing activities	(840)	(6,186)
	(item 2.6 above)

ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter	Year to date (12
		$A’000	months)
			$A’000
4.4	Net cash from / (used in) financing activities	(118)	7,179
	(item 3.10 above)
4.5	Effect of movement in exchange rates on	-	-
	cash held
4.6	Cash and cash equivalents at end of	6,478	6,478
	period
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	587	482
5.2	Call deposits	5,891	6,613
5.3	Bank overdrafts	-	-
5.4	Other (provide details)	-	-
5.5	Cash and cash equivalents at end of	6,478	7,095
	quarter (should equal item 4.6 above)
6.	Payments to related parties of the entity and their		Current quarter
	associates		$A'000
6.1	Aggregate amount of payments to related parties and their		183
	associates included in item 1
6.2	Aggregate amount of payments to related parties and their		-
	associates included in item 2
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.

ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 4C

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

7.	Financing facilities	Total facility	Amount drawn at
	Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity.	amount at quarter end $A’000	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		N/A

• 7.6 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing 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.

N/A

8.	Estimated cash available for future operating activities	$A’000
8.1	Net cash from / (used in) operating activities (item 1.9)		341
8.2	Cash and cash equivalents at quarter end (item 4.6)		6,478
8.3	Unused finance facilities available at quarter end (item 7.5)		-
8.4	Total available funding (item 8.2 + item 8.3)		6,478
8.5	Estimated quarters of funding available (item 8.4 divided by item 8.1)	N/A

Note: if the entity has reported positive net operating cash flows in item 1.9, answer item 8.5 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.5.

8.6	If item	8.5 is less than 2 quarters, please provide answers to the following questions:
	8.6.1	Does the entity expect that it will continue to have the current level of net operating
		cash flows for the time being and, if not, why not?
	Answer: N/A
	8.6.2	Has the entity taken any steps, or does it propose to take any steps, to raise further
		cash to fund its operations and, if so, what are those steps and how likely does it
		believe that they will be successful?

Answer: N/A

• 8.6.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

Answer: N/A

Note: where item 8.5 is less than 2 quarters, all of questions 8.6.1, 8.6.2 and 8.6.3 above must be answered.

ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 4C Quarterly cash flow 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.

Date: ..............30 July 2021.....................................................................

Authorised by: ................By the board...................................................................

(Name of body or officer authorising release – see note 4)

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow 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 cash flow 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. 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 here: “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”.

5. 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 Council’s Corporate Governance Principles and Recommendations , the board should have received a declaration from its CEO and 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 flows 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.

ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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