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ROCKETDNA LTD. Interim / Quarterly Report 2020
65709_rns_2020-05-21_827d42ec-2b27-49c6-87b3-b5493546f479.pdf
Interim / Quarterly Report
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ADDENDUM TO 31 MARCH 2020 ACTIVITY REPORT
Drone Safety Systems company, ParaZero Limited (ASX: PRZ) (ParaZero or the Company) refers to its 31 March 2020 Quarterly Activity Report and provides the following disclosures required by ASX Listing Rule 4.7C.2 regarding a comparison of its actual expenditure to 31 March 2020 since listing against the "use of funds" statement in its replacement prospectus dated 30 April 2018.
| Use of Proceeds Under Prospectus | Budgeted ExpenditureAmount A($) | Actual ExpenditureAmount A($) |
|---|---|---|
| Research and development | 1,693,441 | (2,596,165) |
| Sales and marketing | 1,426,077 | (1,661,903) |
| Unallocated working capital and others | 1,417,582 | (3,485,746) |
| Expenses of the Offer | 542,900 | (594,738) |
| TOTAL | 5,080,000 | (8,338,552) |
| Add: Receipts from customers Between admission and 31 March2020 | 3,285,757 | |
| Add: Additional capital raise between admission and 31 March2020 | 3,373,241 | |
| Less: Product manufacturing and operating costs as disclosed inAppendix 4C | (3,418,500) | |
| Funds at 31 March 2020 as disclosed in Appendix 4C | (18,054) |
Explanation of variance
The variances for Research and Development and Sales and Marketing were mainly attributed to further development and the ASTM certification of the Safe Air unit, along with the development and certification of a new generation of safety device for Airobotics.
The variance for working capital and other proceeds was due to the establishment of an Israeli Logistic & Production Team, recruitment of a full time Chief Operations Officer, Vice President Research and Development and Vice President of Policy and Strategy, funds related to the public entity, policy and regulatory expenses and unexpected expenses on professional and consultancy services for the various activities and raisings undertaken since listing.
Further, initial expenditure variance for working capital was attributed to the Company increasing its upfront investment in the inventory of the SafeAir product beyond what was contemplated in the 'use of proceeds' table. The Company took this approach so as to obtain a lower manufacturing cost per unit in order to produce a high margin product (referred to in its ASX announcement dated 31 October 2018).
This announcement has been authorised for release by the Board of ParaZero Limited.
-ENDS-
For more information, please contact: Corporate and Business enquiries Eden Attias Chairman and Chief Executive Officer P: +972 3688 5252
Investor enquiries Stephen Buckley Company Secretary P: +61 (0)8 6189 1155
Media Contact: Heidi Cuthbert
[email protected] +61 411 272 366
About ParaZero Limited
ParaZero (www.parazero.com) was founded in 2014 to accomplish a vision to enable the drone industry to realise its greatest potential. ParaZero offers a smart and intuitive solution to enable drone industry growth by designing, developing and providing best-in-class autonomous safety systems for commercial drones.