POINTERRA LIMITED — Interim / Quarterly Report 2019

Feb 27, 2019

Appendix 4D

INTERIM FINANCIAL REPORT

FOR THE HALF YEAR ENDED 31 DECEMBER 2018

POINTERRA LIMITED ABN 39 078 388 155

1. Company details

POINTERRA LIMITED

ABN or equivalent company reference 39 078 388 155	Financial period ended (‘current period’) 31 December 2018	Financial period ended (‘previous period’)
39 078 388 155	31 December 2018	31 December 2017

2. Results for announcement to the market

2.1.	Revenue Down	25% to	93,584
2.2.	Profit (loss) after tax Up	25% to	(1,279,945)
2.3.	Net profit (loss) for the period attributable to members Up	25% to	(1,279,945)
2.4.	Dividends
	It is not proposed to pay dividends.
2.5.	Record date for determining entitlements to the final dividend.		N/A
2.6.	Brief explanation of any of the figures in 2.1 to 2.4 above necessary to enable the figures to be
	understood.
It is recommended that the Appendix 4D be read in conjunction with the Company’s ASX releases during the			half year in
accordance with the continuous disclosure obligations under the ASX listing rules. Please also refer to the attached
Interim	Report for the Half-Year ended 31 December 2018 for further information.
2.7.

3. NTA Backing

3. NTA Backing
	Current Period	Previous Corresponding Period
Net tangible asset backing per ordinary security	$0.0024	$0.0055

Pointerra Limited ABN 39 078 388 155

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Appendix 4D

HALF YEAR REPORT FOR THE PERIOD ENDED 31 DECEMBER 201 8

4. Control gained over entities

Name of entity (or group of entities) N/A Date control gained N/A

5. Dividend Reinvestment Plans

The company does not have a dividend reinvestment plan.

6. Details of associates and joint venture entities

There are no associates or joint venture entities.

7. Statement of compliance in regards to audit

If the accounts are subject to audit dispute or qualification, details are described below

Sign here: ____ Date: 28 February 2019 Non-Executive Director & Company Secretary

Print name: Neville Bassett

Pointerra Limited ABN 39 078 388 155

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POINTERRA LIMITED

ABN 39 078 388 155

Interim Financial Report

For the Half-Year Ended 31 December 2018

This interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2018, and any public announcements made by Pointerra Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

ABN 39 078 388 155

Pointerra Limited

Interim Financial Report

For the Half-Year Ended 31 December 2018

Table of Contents

Corporate Information ..................................................................................................................... 1 Directors’ Report ............................................................................................................................... 2 Auditor’s Independence Declaration ........................................................................................... 5 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income .............................................................................................................................................. 6 Condensed Consolidated Statement of Financial Position ........................................................ 7 Condensed Consolidated Statement of Changes in Equity ...................................................... 8 Condensed Consolidated Statement of Cash Flows .................................................................. 9 Directors' Declaration .................................................................................................................... 15 Independent Auditor's Report ...................................................................................................... 16

Corporate Information

Pointerra Limited ABN 39 078 388 155

Directors

Neville Bassett, Non-Executive Chairman Paul Farrell, Non-Executive Director Ian Olson, Managing Director

Company Secretary Neville Bassett

Registered Office

Level 4, 216 St Georges Terrace Perth, WA 6000

Telephone: +61 8 6268 2622 Facsimile: +61 8 6268 2699

Principal Office

Level 2, 27 Railway Road Subiaco, WA 6008

Internet

Website: www.pointerra.com Email: info@pointerra.com

Auditor

Bentleys Audit & Corporate (WA) Pty Ltd Level 3, 216 St Georges Terrace Perth, WA 6000

Share Registry

Advanced Share Registry Services Ltd 110 Stirling Highway Nedlands, WA 6009

Email: admin@advancedshare.com.au Telephone: +61 8 9389 8033 Facsimile: +61 8 9262 3723

Solicitors

Steinepreis Paganin Level 4, The Read Buildings 16 Milligan Street Perth, WA 6000 Telephone: +61 8 9321 4000 Facsimile: +61 8 9262 3723

Stock Exchange Listing

Pointerra Limited shares are listed on the Australian Securities Exchange (ASX Code: 3DP)

Pointerra Limited ABN 39 078 388 155

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Directors’ Report

Your Directors present their report on Pointerra Limited for the half-year ended 31 December 2018.

The names of the directors in office at any time during or since the end of the half-year are:

NAME OF PERSON POSITION DATE APPOINTED DATE RESIGNED Mr Graham Griffiths Non-Executive Chairman 30 June 2016 7 February 2019* Mr Ian Olson Managing Director 30 June 2016 Mr Paul Farrell Non-Executive Director 9 November 2018 Mr Neville Bassett Non-Executive Director 30 June 2016 Dr Robert Newman Non-Executive Director 30 June 2016 9 November 2018 Mr Neville Bassett Company Secretary

*The Directors note with immense sadness the sudden passing of Graham Griffiths subsequent to the half year and extend our deepest sympathy to Graham’s family, friends and business associates.

Results

The operating loss after income tax for the half-year amounted to $1,263,069 (31 December 2017 PCP (Prior Corresponding Period): $1,021,138).

Review of Operations

Commentary on the results for the half-year ended 31 December 2018

• Growth in cash receipts for the half compared to the PCP; ACV at $0.93 million

• Material growth in domestic enterprise utility sector customers with full financial impact in H2 FY19

• Multiple US customers secured across diverse range of sectors with full financial impact in H2 FY19

• Over-subscribed placement to further accelerate sales growth

Cash Receipts, ACV Status, Enterprise Sales & Data Marketplace

Cash Receipts & ACV Status

During the half year the Company received $206K in customer receipts compared to the PCP figure of $66K.

Pointerra also commenced quarterly reporting of aggregate ACV (annual contract value), which is generally accepted as one of the better measures of sales performance for a SaaS business and will allow the Company to report on growth in customer sales in addition to cash generated through operations.

ACV amounted to $0.93 million as at 31 January 2019 and the Company expects this to continue to grow throughout 2019 and beyond based on pending contract awards and DaaS (Data as a Service) proposals submitted to prospective customers.

Enterprise Sales

During the half year Pointerra successfully migrated the Company’s longest running domestic enterprise customer in the utility sector from a $5,000 pcm DaaS subscription to $10,000 pcm and then $20,000 pcm subscription.

This landmark outcome for the Company followed an extensive and successful paid Proof of Concept (POC) period, where Pointerra worked with the customer to understand the positive impact on asset management, workflow and operational efficiencies generated through use of Pointerra’s cloud platform for 3D data across the enterprise.

The POC process identified ROI (Return on Investment) outcomes across the enterprise through the use of Pointerra’s solution and post-implementation is already generating previously unforeseen incremental benefits for this customer across the more than 2,000 users.

Pointerra Limited ABN 39 078 388 155

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Directors’ Report (continued)

These important learnings further helped secure the Company’s 2nd domestic utility customer during the quarter and are now being used to accelerate the conversion of other trial customers to enterprise DaaS subscriptions as well as helping attract new prospects across multiple industry sectors in Australia, the US and Europe.

Through leveraging these customer validated ROI outcomes during the half year, Pointerra also secured a number of US enterprise customers across a range of sectors including the ADAS (Advanced Driver Assistance Systems), AEC (Architecture, Engineering & Construction) and Surveyor/Mapping/UAS verticals, all of which have helped contribute to the current ACV level of $0.93 million.

The Company entered calendar 2019 with record levels of trial customers, submitted proposals and pending contract awards. A new US sales resource commenced with the company on January 21 and additional prospective hires have been identified in both Australia and the US. This growing global sales team will accelerate execution of the sales pipeline throughout the year.

3D Data Marketplace Update

During the half year Pointerra continued to work with domestic data capture partners to progress the deployment of curated datasets for sale by subscription and spot-purchase on the Company’s 3D data marketplace platform.

The Company has also advanced licensing negotiations with several US-based data capture businesses to deploy their 2D imagery and 3D data onto Pointerra’s 3D data marketplace, again for sale by subscription and spot-purchase. In addition, the more sophisticated and pervasive use of 3D data in the US market has also presented a number of 3D data analytics opportunities leveraging the core 3D data sources to provide deeper insight and help answer a range of diverse digital asset management questions.

As previously advised, the Company expects that data from aerial and mobile capture partners will begin to be loaded onto Pointerra’s platform in coming quarters, with first sales generated thereafter.

Solution Development and R&D

Solution Development

The front-end user interface has undergone further UI (user interface) refresh. This has laid the foundation for adding a range of new capabilities into the viewing platform in the future, through the implementation of new plugin architecture, including tighter integration into desktop applications of our partners Autodesk and Bentley.

Data upload improvements . Further improvements to the browser based data upload process were delivered, with the web upload process now tolerant to network dropouts and other interruptions. A large-scale data upload facility has also been created for enterprise customers so that external tools can be used to upload their data into a custom AWS storage location provided as part of their Pointerra account. This means that enterprise customers are not required to upload large datasets through a web interface and are able to use a more robust methodology to get their data into Pointerra’s cloud platform.

Research and Development

As outlined previously, R&D efforts continue to focus on three strategic areas:

1. Development of a platform to underpin the delivery of point cloud analytics to Pointerra customers;

2. Developing an initial catalogue of analytics (either internally developed, or through partners); and

3. Broadening the platform to support storage and visualisation of complementary 3D data types, including imagery, CAD and vector layers.

Cash Flow & Corporate

Cash receipts from customers during the half year amounted to $206K, up from $66K in the PCP. Encouraged by material growth of the international and regional sales pipeline in the infrastructure utilities; surveying and mapping; and AEC sectors, the Board resolved to pursue an accelerated sales execution strategy during the quarter.

This strategy required additional human resources and in December Pointerra successfully raised $1.15 million through an over-subscribed placement of 27.38 million shares at a price of $0.042 to fund the recruitment of sales resources in the US and Australia as well as for general working capital purposes.

Cash outflows for the half year were in line with management expectations and the cash balance at 31 December 2018 amounted to $1.865 million.

Pointerra Limited ABN 39 078 388 155

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Directors’ Report (continued)

Auditor’s Independence Declaration

The lead auditor’s independence declaration under section 307C of the Corporations Act 2001 is set out on page 5 for the half-year ended 31 December 2018.

This Report is signed in accordance with a resolution of the Board of Directors.

On behalf of the Board of Directors.

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Neville Bassett Director

28 February 2019

Pointerra Limited ABN 39 078 388 155

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To the Board of Directors

Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001

As lead audit director for the review of the financial statements of Pointerra Limited for the period ended 31 December 2018, I declare that to the best of my knowledge and belief, there have been no contraventions of:

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• the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

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• any applicable code of professional conduct in relation to the review.

Yours faithfully

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BENTLEYS Chartered Accountants

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MARK DELAURENTIS CA Partner

Dated at Perth this 28[th] day of February 2019

Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income

for the half-year ended 31 December 2018

Note Revenue Interest income Cost of Services Administrative expenses 3 Advertising and marketing expenses Compliance and regulatory expenses Research and development expenses 4 Other expenses Share-based payment expense 10 Loss before income tax Income tax expense Loss after income tax for the year Other comprehensive income Total comprehensive loss for the period attributable to members of the Group Basic loss per share (cents per share)	31 December 2018 $ 31 December 2017 $ 93,584 115,378 10,655 23,942 (4,000) - (487,222) (318,919) (14,520) (12,749) (131,930) (108,776) (558,011) (512,175) (210,284) (141,807) 38,659 (66,032)
	(1,263,069) (1,021,138) - -
	(1,263,069) (1,021,138) (16,876) - (1,279,945) (1,021,138)
	(0.2576) (0.2731)

The accompanying notes form part of these condensed financial accounts

Pointerra Limited ABN 39 078 388 155

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Condensed Consolidated Statement of Financial Position

as at 31 December 2018

Note CURRENT ASSETS Cash and cash equivalents 5 Trade and other receivables 6 Other TOTAL CURRENT ASSETS NON-CURRENT ASSETS Plant and equipment Intangible assets TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables 7 Deferred revenue 8 Provisions TOTAL CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital 9 Reserves Accumulated losses TOTAL EQUITY	31 December 2018 $ 30 June 2018 $ 1,865,363 1,385,834 35,397 614,255 35,999 23,818
	1,936,759 2,023,907
	54,354 60,706 46,200 53,689
	100,554 114,395
	2,037,313 2,138,302
	572,762 478,055 7,836 - 136,543 114,695
	717,141 592,750
	717,141 592,750
	1,320,172 1,545,552
	6,821,693 5,728,469 1,493,074 1,548,609 (6,994,595) (5,731,526)
	1,320,172 1,545,552

The accompanying notes form part of these condensed financial accounts

Pointerra Limited ABN 39 078 388 155

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Condensed Consolidated Statement of Changes in Equity

for the half-year ended 31 December 2018

BALANCE AT 1 JULY 2017 Loss for the year Other comprehensive income Total comprehensive loss for the period Transactions with owners directly in equity Share-based payments BALANCE AT 31 December 2017 BALANCE AT 1 JULY 2018 Loss for the year Other comprehensive income Total comprehensive loss for the period Transactions with owners directly in equity Shares issued Share issue transaction costs Share-based payments BALANCE AT 31 December 2018

Issued Capital Option Reserves Foreign exchange reserve Accumulated Losses Total $ $ $ $ $ 5,728,469 1,408,902 - (4,070,683) 3,066,688 - - - (1,021,138) (1,021,138) - - - - - - - - (1,021,138) (1,021,138) - 66,032 - - 66,032 5,728,469 1,474,934 - (5,091,821) 2,111,582 Issued Capital Option Reserves Foreign exchange reserve Accumulated Losses Total $ $ $ $ $ 5,728,469 1,550,551 (1,942) (5,731,526) 1,545,552 - - - (1,263,069) (1,263,069) - - (16,876) - (16,876) - - (16,876) (1,263,069) (1,279,945) 1,150,000 - - - 1,150,000 (56,776) - - - (56,776) - (38,659) - - (38,659) 6,821,693 1,511,892 (18,818) (6,994,595) 1,320,172

The accompanying notes form part of these condensed financial accounts

Pointerra Limited ABN 39 078 388 155

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Condensed Consolidated Statement of Cash Flows

for the half-year ended 31 December 2018

Note CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers and employees Interest and other costs of finance paid Interest received Receipts from Government grants and tax incentives Net Cash Used In Operating Activities CASH FLOWS FROM INVESTING ACTIVITIES Payments to acquire property, plant and equipment Payments to acquire intangible assets Net Cash Used In Investing Activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issues of shares Payment of share issue costs Net Cash Provided By Financing Activities Net increase/(decrease) in cash held Effect of movement in exchange rates on cash held Cash and Cash Equivalents at beginning of the period Cash and Cash Equivalents at end of the period 5	31 December 2018 $ 31 December 2017 $ 206,419 65,960 (1,344,148) (1,109,097) (1,527) (681) 10,655 23,942 486,903 496,376
	(641,698) (523,500)
	(8,928) (14,001) (5,467) (27,701)
	(14,395) (41,702)
	1,150,000 - - -
	1,150,000 -
	493,907 (565,202) (14,378) - 1,385,834 2,818,005
	1,865,363 2,252,803

The accompanying notes form part of these condensed financial accounts

Pointerra Limited ABN 39 078 388 155

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Notes to the Condensed Financial Statements

for the half-year ended 31 December 2018

NOTE 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

Statement of compliance

The half-year financial report is a general purpose financial report prepared in accordance with the Corporations Act 2001 and AASB 134 Interim Financial Reporting . Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 Interim Financial Reporting . The half-year report does not include notes of the type normally included in an annual financial report and shall be read in conjunction with the most recent annual financial report.

The half-year report complies with Australian Accounting Standards – Reduced Disclosure Requirements issued by the Australian Accounting Standards Board.

Basis of preparation

The condensed financial statements comprise of the financial statements of Pointerra Limited and its subsidiaries at the reporting date (the “Group”) and have been prepared on the basis of historical cost, except for the revaluation of certain non-current assets and financial instruments. Cost is based on the fair values of the consideration given in exchange for assets. All amounts are presented in Australian dollars, unless otherwise noted.

The accounting policies and methods of computation adopted in the preparation of the half-year financial report are consistent with those adopted and disclosed in the Group’s 2018 annual financial report for the financial year ended 30 June 2018, except for the impact of the Standards and Interpretations described below. These accounting policies are consistent with Australian Accounting Standards and with International Financial Reporting Standards.

Amendments to Accounting Standards that are mandatorily effective for the current reporting period

The Group has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (the AASB) that are relevant to their operations and effective for the current half-year.

New and revised Standards and amendments thereof and Interpretations effective for the current half-year that are relevant to the Group include:

• AASB 15 Revenue from Contracts with Customers

• AASB 9 Financial instruments

The adoption of the above standards has not had a material impact on this half-year financial report.

NOTE 2. EVENTS AFTER THE BALANCE SHEET DATE

No other matters or circumstances have arisen subsequent to 31 December 2018, which significantly affected or may significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial years.

Pointerra Limited ABN 39 078 388 155

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Notes to the Condensed Financial Statements

for the half-year ended 31 December 2018 (continued)

NOTE 3. ADMINISTRATIVE EXPENSES

Accounting and audit fees Consulting and contracting expenses Director fees Employee benefits expense NOTE 4. RESEARCH AND DEVELOPMENT EXPENSES Employee benefits expense Other research and development expenses NOTE 5. CASH AND CASH EQUIVALENTS Cash at bank Deposits on call NOTE 6. TRADE AND OTHER RECEIVABLES CURRENT Accounts receivable Less: Provision for doubtful debts expense R&D tax offset receivable GST receivable NOTE 7. TRADE AND OTHER PAYABLES CURRENT Unsecured Liabilities: Trade Payables Sundry creditors and accrued expense NOTE 8. DEFERRED REVENUE Deferred revenue	31 December 2018 $ 31 December 2017 $ (44,450) (26,753) (30,000) (67,598) (76,500) (58,500) (336,272) (166,068)
	(487,222) (318,919)
	(523,915) (432,667) (34,096) (79,508)
	(558,011) (512,175)
	31 December 2018 $ 30 June 2018 $ 1,315,363 329,129 550,000 1,056,705
	1,865,363 1,385,834
	16,252 111,570 (6,987) - - 486,903 26,132 15,782
	35,397 614,255
	340,596 228,886 232,166 249,169
	572,762 478,055
	7,836 -
	7,836 -

Deferred revenue arises whereby DaaS customers are invoiced and/or pay in advance for a multi-period DaaS subscription license, which is then amortised monthly over the term.

Pointerra Limited ABN 39 078 388 155

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Notes to the Condensed Financial Statements

for the half-year ended 31 December 2018 (continued)

NOTE 9. ISSUED CAPITAL

521,223,112 (June 2018: 493,842,159) fully paid ordinary shares Less: capital raising fees Net issued capital Movements: Opening balance as at 1 July 2017 Share issue costs conversion of Class B performance shares Share issue costs conversion of Class C performance shares As at 30 June 2018 Share placement Share issue costs As at 31 December 2018	31 December 2018 $ 30 June 2018 $ 8,146,700 6,996,700 (1,325,007) (1,268,231)
	6,821,693 5,728,469
	$ No.
	5,728,469 373,842,157 - 60,000,001 - 60,000,001
	5,728,469 493,842,159 1,150,000 27,380,953 (56,776) -
	6,821,693 521,223,112

Ordinary shares participate in dividends and the proceeds on winding up of the parent entity 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.

On 21 March 2018 60,000,001 Class B performance shares were converted as a result of achieving the performance milestone of execution of a commercial technology evaluation agreement with an independent third party for potential use of Pointerra’s DaaS solution, and the volume weighted average price of shares traded on the ASX over 20 consecutive days is not less than $0.06.

On 21 March 2018 60,000,001 Class C performance shares were converted as a result of achieving the performance milestone of execution of a commercial license agreement with an independent third party for potential use of Pointerra’s DaaS solution, and the volume weighted average price of shares traded on the ASX over 20 consecutive days is not less than $0.09.

On 11 December 2018 27,380,853 shares were placed to institutional and sophisticated investors at a price of $0.042, raising $1.15 million before costs.

Pointerra Limited ABN 39 078 388 155

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Notes to the Condensed Financial Statements

for the half-year ended 31 December 2018 (continued)

NOTE 10. SHARE-BASED PAYMENTS

(a) Options issued for corporate advisory services

4,000,000 options were issued on 25 September 2017 in consideration of corporate advisory services. The options were valued at $0.0178 and were expensed as share-based payments.

4,000,000 options were issued on 25 September 2017 in consideration of corporate advisory services. These options met the performance condition that Pointerra’s share price achieve a 15-day VWAP of $0.06 within 12 months from date of issue, and were valued at $0.0037 and were expensed as share-based payments.

4,000,000 options were issued on 25 September 2017 in consideration of corporate advisory services. These options met the performance condition that Pointerra’s share price achieve a 15-day VWAP of $0.09 within 24 months from date of issue, and were valued at $0.0014 and were expensed as share-based payments.

(b) Options issued to employees

3,000,000 incentive options with an expiry date of 20 May 2020 and an exercise price of $0.07 were issued on 21 March 2018 pursuant to the Pointerra Ltd Employee Option Plan. The options were valued at $0.0358 and during the year end 30 June 2018, $29,937 was expensed as share-based payments. These options were subject to a vesting service condition of continuous employment. These conditions have since not been satisfied, therefore during the period the previously expensed share-based payments amount has been reversed.

3,000,000 incentive options with an expiry date of 20 May 2020 and an exercise price of $0.07 were issued on 21 March 2018 pursuant to the Pointerra Ltd Employee Option Plan. The options were valued at $0.0358 and during the year end 30 June 2018, $19,982 was expensed as share-based payments. These options were subject to a vesting service condition of continuous employment. These conditions have since not been satisfied, therefore during the period the previously expensed share-based payments amount has been reversed.

2,500,000 incentive options with an expiry date of 2 August 2020 and an exercise price of $0.05 were issued on 23 November 2018 pursuant to the Pointerra Ltd Employee Option Plan. The options were valued at $0.0189 and were expensed as sharebased payments.

2,500,000 incentive options with an expiry date of 2 August 2020 and an exercise price of $0.05 were issued on 23 November 2018 pursuant to the Pointerra Ltd Employee Option Plan. The options were valued at $0.0189 and were expensed as sharebased payments.

(c) Option valuation assumptions

The fair value of the options granted was estimated as at the date of grant using a Black-Scholes option valuation model and a Monte Carlo simulation valuation model. The following table lists the inputs to the models:

	Dividend yield	Expected	Risk-free interest	Expected life	Share price at
	(%)	volatility (%)	rate (%)	(years)	grant date
2017
Advisor Options - issued 25 Sep 17	Nil	70	1.76	3.0	0.042
Advisor Options - issued 25 Sep 17	Nil	69	2.18	4.0	0.042
Advisor Options - issued 25 Sep 17	Nil	69	2.18	4.0	0.042
2018
Employee Incentive Scheme	Nil	69	2.02	2.2	0.080
Options - issued 21 Mar 18
Employee Incentive Scheme	Nil	69	2.05	2.2	0.080
Options - issued 21 Mar 18
Employee Incentive Scheme	Nil	79	2.03	1.7	0.048
Options - issued 23 Nov 18
Employee Incentive Scheme	Nil	79	2.03	1.7	0.048
Options - issued 23 Nov 18

Pointerra Limited ABN 39 078 388 155

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Notes to the Condensed Financial Statements

for the half-year ended 31 December 2018 (continued)

NOTE 11. OPERATING SEGMENTS

The Group has only one reportable segment, being the development and commercialisation of its unique 3D geospatial data technology.

NOTE 12. FINANCIAL INSTRUMENTS

The carrying amount of financial assets and liabilities are equal to their fair value based on their short-term nature. No financial assets or liabilities are required to be measured at their fair value on a recurring basis.

Pointerra Limited ABN 39 078 388 155

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Directors' Declaration

The directors declare that:

• (a) in the directors’ opinion, there are reasonable grounds to believe that the Group will be able to pay its debts as and when they become due and payable; and

• (b) in the directors’ opinion, the attached financial statements as at 31 December 2018 and notes thereto are in accordance with the Corporations Act 2001 , including compliance with accounting standards and giving a true and fair view of the financial position and performance of the consolidated entity.

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

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Neville Bassett Director

28 February 2019

Pointerra Limited ABN 39 078 388 155

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Independent Auditor’s Review Report

To the Members of Pointerra Limited

We have reviewed the accompanying financial report of Pointerra Limited (“the Company”) and Controlled Entities (“the Consolidated Entity”) which comprises the condensed consolidated statement of financial position as at 31 December 2018, the condensed consolidated statement of profit or loss and other comprehensive income, condensed consolidated statement of changes in equity and condensed consolidated statement of cash flows for the half year ended on that date, a statement of accounting policies, other selected explanatory notes and the directors’ declaration of the Consolidated Entity, comprising the Company and the entities it controlled during the period.

Directors Responsibility for the Financial Report

The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express a conclusion on the financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the Consolidated Entity’s financial position as at 31 December 2018 and its performance for the half year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . As the auditor of the Consolidated Entity, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independent Auditor’s Review Report To the Members of Pointerra Limited (Continued)

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Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 .

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the financial report of Pointerra Limited and Controlled Entities is not in accordance with the Corporations Act 2001 including:

• a. Giving a true and fair view of the Consolidated Entity’s financial position as at 31 December 2018 and of its performance for the period ended on that date; and

• b. Complying with Accounting Standard AASB 134: Interim Financial Reporting and Corporations Regulations 2001.

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BENTLEYS MARK DELAURENTIS CA Chartered Accountants Partner

Dated at Perth this 28[th] day of February 2019