REMSENSE TECHNOLOGIES LIMITED — Interim / Quarterly Report 2023

Jul 17, 2023

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ASX ANNOUNCEMENT

18 July 2023

JUNE 2023 QUARTERLY ACTIVITIES REPORT

HIGHLIGHTS

• Operational cashflow near break even

• Increased customer receipts

• Software development expenses reduced with client funded developments

• • Expanding virtualplant footprint

APPENDIX 4C COMMENTARY

Comparatives between 1[st] Half (Dec 2022) and 2[nd] Half (June 2023) reflect a strong second half performance.

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Cash Used in Operations
1,800
1,600
1,400
1,200
1,000
800
600
400
200
-
Half 1 Half 2
Customer ReceiptsCustomer Receipts
2,000
1400
1,800
1,6001300
1,4001200
1,200
1100
1,000
8001000
600
900
400
200800
700 -
Half 1 Half 2
1,032
AUD 1.000
AUD 1.000
AUD 1.000
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Net operating cash only -$68k for the second half due to increased business activity and cost management.

Customer receipts up 81% reflecting increasing activity and improving payment terms.

Software Development Expenses

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800
700
600
500
400
300
200
100
-
Half 1 Half 2
AUD 1.000
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Customers actively funding new virtualplant software features reducing internal development costs.

Suite 173, 580 Hay St Perth WA 6000| +61 8 6118 5610 | rem@remsense.com.au ACN 648 834 771

QUARTERLY ACTIVITY

• Successfully delivered virtualplant scanning data to Chevron for first of four contracted LNG facilities.

• Continued working with Programmed to deliver integration into IBM Maximo.

• Completed additional site trials with Newmont incorporating additional scanning features and virtualplant integration.

• Delivered new work pack generation tool within virtualplant for Woodside corrosion maintenance repair planning.

• Successfully completed third party cyber security penetration testing of new v3 virtualplant release.

• Continued to work with Peak Asset Management to finalise placement to fund nonorganic growth.

OPPORTUNITIES

We believe we are in a far better place to secure our next sale opportunities than one year ago. REM has: -

• a software product that has two very large global energy companies as references.

• a software product that is built enterprise grade and will scale globally.

• established global partnerships.

• a total expanding marketplace that is sized at billions of dollars.

• just another one or two large customers will see the group trading profitably.

ADDITIONAL APPENDIX 4C DISCLOSURES

The following information is provided as required under ASX Listing Rule 4.7C that has not been disclosed in the body of the quarterly activities report.

ASX Listing Rule 4.7C.2

The “use of funds” statement in the prospectus covers two years from date of listing. The table below details a list of the total amount estimated in the prospectus by category, and the amount spent and invested for the quarter ending 31 December 2022:

Expenditure ($,000)	IPO use of funds 2 years	Actual to 30 June 2023	Remaining Balance	Material Variance Explanation
Business development and marketing	2,100	1,631	469	On track with greater expenditure in second year
Product improvements and ongoing development of virtual plant	500	1,292	-792	Additional features developed which enhances marketability

Suite 173, 580 Hay St Perth WA 6000| +61 8 6118 5610 | rem@remsense.com.au

ACN 648 834 771

Expenses of the Offer	506	485	21	Final
Capital Expenditure	500	754	-254	Concluded purchase of background Intellectual Property (IP) from Woodside not in original projection for $400,000 which now removes ongoing license fee payments thus lowering future costs1
Working Capital	1,796	1,677	119
TOTAL	5,402	5,839	-437

1 1,609,881 Share Options as part of the capital structure on IPO were exercised at $0.25 on 18 July 2022 providing additional equity around the time the purchase was concluded

The Group is on track to meet its business objectives that sit behind the “use of funds” statement.

ASX Listing Rule 4.7C.3

Payments to related parties totalling $182,000 for the quarter, comprising director and key management personnel salaries and superannuation.

-ENDS-

This announcement has been approved for release by the Board of RemSense Technologies Limited.

For further information:

Steve Brown Managing Director and CEO +61 8 6118 5610 rem@remsense.com.au

About RemSense

RemSense Technologies Limited (ASX: REM)

RemSense has developed virtualplant, a photographic asset visualisation platform that fulfills the promise of VR/AI technology as a digital representation of plant assets (digital twin) that integrates with existing business operations and asset management systems to deliver greater productivity, increased safety, and reduced cost.

Suite 173, 580 Hay St Perth WA 6000| +61 8 6118 5610 | rem@remsense.com.au ACN 648 834 771

Rule 4.7B

Appendix 4C

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

Name of entity

RemSense Technologies Limited

ABN

50 648 834 771

Quarter ended (“current quarter”)

30 June 2023

Consolidated statement of cash flows	Current quarter $A’000	Year to date (12 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) research and development (b) product manufacturing and operating costs (c) advertising and marketing (d) leased assets (e) staff costs (f) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 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	1,155 28 (78) (100) - (880) (140) - 1 (4) - -	2,900 (4) (601) (341) - (3,202) (580) - 4 (13) - 184
	(19)	(1,653)
2. Cash flows from investing activities 2.1 Payments to acquire or for: (a) entities (b) businesses (c) property, plant and equipment (d) investments (e) intellectual property (f) other non-current assets	- - (28) - (109) -	- - (118) - (829) -

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 $A’000	Year to date (12 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 (provide details if material) 2.6 Net cash from / (used in) investing activities		- - 18 - - - - - -	- - 28 - - - - - -
		(119)	(919)
3. Cash flows from financing activities 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 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 Premium Funding 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (lease liabilities right of use assets) 3.10 Net cash from / (used in) financing activities		200 - - (41) - (70) - - (20)	1,245 - 402 (96) - (222) - - (107)
		69	1,222
4. 4.1 4.2 4.3	Net increase / (decrease) in cash and cash equivalents for the period Cash and cash equivalents at beginning of period Net cash from / (used in) operating activities (item 1.9 above) Net cash from / (used in) investing activities (item 2.6 above)	859 (19) (119)	2,140 (1,653) (919)

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 $A’000	Year to date (12 months) $A’000
4.4 4.5 4.6	Net cash from / (used in) financing activities (item 3.10 above) Effect of movement in exchange rates on cash held Cash and cash equivalents at end of period	69 -	1,222 -
		790	790
5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts		Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 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)		790 - - -	859 - - -
		790	859
6. Payments to related parties of the entity and their associates			Current quarter $A'000
6.1 Aggregate amounts of payments to related parties and their associates included in item 1 182 6.2 Aggregate amounts 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.			182
			-

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. 7.1 7.2 7.3 7.4 7.5 7.6	Financing facilities 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. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 Loan facilities - - Credit standby arrangements - - Other (please specify) - - Total financing facilities - - Unused financing facilities available at quarter end - 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.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
		-	-
		-	-
		-	-
		-	-

8.	Estimated cash available for future operating activities	$A’000
8.1 8.2 8.3 8.4 8.5 8.6	Net cash from / (used in) operating activities (item 1.9) (19) Cash and cash equivalents at quarter end (item 4.6) 790 Unused finance facilities available at quarter end (item 7.5) - Total available funding (item 8.2 + item 8.3) 790 Estimated quarters of funding available (item 8.4 divided by item 8.1) 41.58 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. 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?	(19) 790 -
		790
	Answer:
	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:
	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
	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: 18 July 2023.

Authorised by: Steve Brown – Chief Executive Officer

(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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