ROCKETDNA LTD. — Interim / Quarterly Report 2018

Aug 1, 2018

ASX Company Announcement

REPLACEMENT APPENDIX 4C

2 August 2018

Please find attached an Appendix 4C which is to replace the Appendix 4C lodged on 31 July 2018.

We have only identified today that there was a technical issue with our banking records in recording the cash at bank. There was also a compensating error in the failure to record the receipt of funds from the previous issue of Notes.

The attached Appendix now reflects the true position of our cash at bank which is US$3.484 million, being US$1.174 million higher than originally stated.

-ENDS-

ABOUT PARAZERO

ParaZero (www.parazero.com) was founded in 2014 to accomplish a vision to enable the drone industry to realize its greatest potential. ParaZero offers a smart and intuitive solution to enable drone industry growth by designing, developing and providing bestin-class autonomous safety systems for commercial drones.

+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

ParaZero Limited

ABN Quarter ended (ìcurrent quarterî)

17 618 678 701 30 June 2018

Consolidatedstatementofcashflows		Currentquarterí000	Yeartodate*í000(6months)
		$US	$US
1.	Cashflowsfromoperatingactivities
1.1	Receiptsfromcustomers	288	288
1.2	Paymentsfor
	(a)researchanddevelopment	(753)	(753)
	(b)productmanufacturingandoperatingcosts	(99)	(99)
	(c)advertisingandmarketing	(193)	(193)
	(d)leasedassets	-	-
	(e)staffcosts	(175)	(175)
	(f)administrationandcorporatecosts	(589)	(589)
1.3	Dividendsreceived(seenote3)	-	-
1.4	Interestreceived	-	-
1.5	Interestandothercostsof financepaid	(81)	(81)
1.6	Incometaxespaid	-	-
1.7	ñGovernmentgrantsandtaxincentives	101	101
1.8	Othertransactioncosts	(93)	(93)
1.9	Netcashfrom/(usedin) operatingactivities	(1,594)	(1,594)

* This Appendix 4C is the first one lodged by ParaZero Limited (PRZ) following completion of the acquisition of Parazero Ltd (Israel) on 13 June 2018 and ASX listing on 14 June 2018.

In accordance with Accounting Standards, the acquisition of Parazero Ltd (Israel) has been accounted for as a reverse acquisition. As a result, the consolidated statement of cash flows comprises the cash transactions of Parazero Ltd (Israel) for the period 1 January 2018 ñ 30 June 2018 and the cash transactions of PRZ for the period 13 June 2018 ñ 30 June 2018.

1 September 2016 Page 1

2.	Cashflowsfrominvestingactivities
2.1	Paymentstoacquire:
	(a)property,plantandequipment	-	-
	(b)businesses(seeitem10)	-	-
	(c)investments	-	-
	(d)intellectualproperty	-	-
	(e)othernon-currentassets	-	-
2.2	Proceedsfromdisposalof:
	(a)property,plantandequipment	-	-
	(b)businesses(seeitem10)	-	-
	(c)investments	-	-
	(d)intellectualproperty	-	-
	(e)othernon-currentassets	-	-
2.3	Cashflowsfromloanstootherentities	396	396
2.4	ñDividendsreceived(seenote3)	-	-
2.5	Othercashonreverseacquisition	15	15
2.6	Netcashfrom/(usedin) investingactivities	411	411

3.	Cashflowsfromfinancingactivities
3.1	Proceedsfromissuesof shares	3,701	3,701
3.2	Proceedsfromissueof convertiblenotes	1,036	1,036
3.3	Proceedsfromexerciseof shareoptions	-	-
3.4	Transactioncostsrelatedtoissuesofshares,convertiblenotesor options	(145)	(145)
3.5	Proceedsfromborrowings	180	180
3.6	Repaymentofborrowings	(37)	(37)
3.7	Transactioncostsrelatedtoloansandborrowings	-	-
3.8	Dividendspaid	-	-
3.9	Other(providedetailsif material)	-	-
3.10	Netcashfrom/(usedin) financingactivities	4,735	4,735

4.	Netincrease/(decrease)incashandcashequivalentsfortheperiod
4.1	Cashandcashequivalentsat beginningquarter/yeartodate	of54	54
4.2	Netcashfrom/(usedin) operatingactivities(item1.9above)	(1,594)	(1,594)

4.3	Netcashfrom/(usedin) investingactivities(item2.6above)	411	411
4.4	Netcashfrom/(usedin) financingactivities(item3.10above)	4,735	4,735
4.5	Effectofmovementinexchangeratesoncashheld	(122)	(122)
4.6	Cashandcashequivalentsat endofquarter	3,484	3,484

5.	Reconciliationofcashandcashequivalentsattheendof thequarter(asshownintheconsolidatedstatementofcashflows)totherelateditemsintheaccounts	Currentquarter$US	Previousquarter$US
5.1	Bankbalances	3,484	54
5.2	Calldeposits	-	-
5.3	Bankoverdrafts	-	-
5.4	Other(providedetails)	-	-
5.5	Cashandcashequivalentsat endofquarter(shouldequal item4.6above)	3,484	54

6.	Paymentstodirectorsoftheentityandtheirassociates	Currentquarter$US'000
6.1	Aggregateamountofpaymentstothesepartiesincludedinitem1.2	40
6.2	Aggregateamountofcashflowfromloanstothesepartiesincludedinitem2.3	-
6.3	Includebelowanyexplanationnecessarytounderstandthetransactions6.1and6.2	includedinitems
Item	1.2includespaymentstotheChief ExecutiveOfficerofUS$40,288.
	Paymentstorelatedentitiesoftheentityandtheirassociates	Currentquarter$US'000
	Aggregateamountofpaymentstothesepartiesincludedinitem1.2	-
7.7.17.2	Aggregateamountofcashflowfromloanstothesepartiesincludedinitem2.3	-
7.3	Includebelowanyexplanationnecessarytounderstandthetransactionsitems7.1and7.2	includedin

8.	FinancingfacilitiesavailableAddnotesasnecessaryfor anunderstandingof theposition	í000Totalfacilityamountatquarterend$US	í000Amountdrawnatquarterend$US
8.1	Loanfacilities	-	-
8.2	Creditstandbyarrangements	-	-
8.3	Other(pleasespecify)	-	-

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. Loan facility 1 ñ secured long term bankloan of US$128,000 bearing interest rate of 3.25%.

Loan facility 2 ñ secured long term bankloan of US$39,000 bearing interest rate 4.1%. Loan facility 3 ñ secured long term bankloan of US$39,000 bearing interest rate 4.1%.

		í000
9.	Estimatedcashoutflowsfornextquarter	$US
9.1	Researchanddevelopment	378
9.2	Productmanufacturingandoperatingcosts	453
9.3	Advertisingandmarketing	202
9.4	Leasedassets	-
9.5	Staffcosts	403
9.6	Administrationandcorporatecosts	160
9.7	Other(providedetailsif material)	108
9.8	Totalestimatedcashoutflows	1,704

10.	Acquisitionsanddisposalsofbusinessentities(items2.1(b)and2.2(b)above)	Acquisitions	Disposals
10.1	Nameof entity	ParazeroLtd	-
10.2	Placeof incorporationorregistration	Israel	-
10.3	Considerationfor acquisitionordisposal	Refertonote(a) below	-
10.4	Totalnetassets	Refertonote(b) below	-
10.5	Natureof business	Technologydevelopment	-

(a) The acquisition of Parazero Ltd (Israel) was treated as a reverse takeover transaction. Vendor consideration was 51,580,391 ordinary shares. Full terms and conditions of the acquisition can be found in the Replacement Prospectus dated 30 April 2018.

(b) The net assets of Parazero Ltd (Israel) prior to the reverse takeover transaction are based on the audited accounts as at 31 December 2017 and as disclosed in the Investigating Accountantís Report included in the Replacement Prospectus dated 30 April 2018.

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.

Company Secretary

Sign here: ............................................................ Date: 2 August 2018

Print name: Stephen Buckley

Notes

• 1. The quarterly report provides a basis for informing the market how the entityís 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.