SIMBLE SOLUTIONS LIMITED — Annual Report 2020

Feb 25, 2021

Simble Solutions Limited and its controlled entities Appendix 4E Preliminary final report

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1. Company details

Name of entity: Simble Solutions Limited ABN: 17 608 419 656 Reporting period: For the year ended 31 December 2020 Previous period: For the year ended 31 December 2019

2. Results for announcement to the market

			$
Revenues from ordinary activities	down	11.6% to	1,897,079
Loss from ordinary activities after tax attributable to the owners of Simble
Solutions Limited	down	86.6% to	(1,089,733)
Loss for the year attributable to the owners of Simble Solutions Limited	down	86.6% to	(1,089,733)

Dividends

There were no dividends paid, recommended or declared during the current financial period.

Comments

The loss for the Group after providing for income tax amounted to $1,089,733 (31 December 2019: $8,110,719).

Total revenues decreased by 11% to $1,897,079 (2019: $2,147,011). Sales revenue declined 19% to $1,447,922 whilst other income increased 23% to $449,157.

Energy Division total revenues increased by 16% to $890,009 (2019: $766,207). Energy Software as a Service (SaaS) sales revenue increased by 19% to $823,816 whilst hardware sales revenue decreased by 7% to $66,193.

Business Productivity (Mobility) Division sales revenues decreased by 41% to $548,587 (2019: $922,529).

Other income increased by 23% to $449,157 (2019: $364,326). Other income is primarily related to research and development grant income but was augmented during the year by Covid-19 stimulus package receipts in both Australia and the UK.

Simble Solutions Limited and its controlled entities Appendix 4E Preliminary final report

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Underlying EBITDA for the 12 months ended 31 December 2020 was a loss of $792,597 . This represents a 69% improvement against the prior year underlying EBITDA loss of $2,533,814. Underlying EBITDA is a key measurement used by management and the board to assess and review business performance. The table below provides a reconciliation between statutory net loss and underlying EBITDA:

Loss for the year Add back: Interest Tax Depreciation Amortisation Statutory EBITDA Add non-recurring items: Capital raising costs Impairment of goodwill Impairment of assets Underlying EBITDA	Group Unaudited 2020 2019 $ $ (1,089,733) (8,110,719) 297,136 377,213 - 7,953 - 46,349 - 760,936	Group Unaudited 2020 2019 $ $ (1,089,733) (8,110,719) 297,136 377,213 - 7,953 - 46,349 - 760,936
	(792,597) - - -	(6,918,268) 178,495 851,578 3,354,381
	(792,597)	(2,533,814)

Net cash used in operating activities decreased by 55% to $1,531,365 (2019: $3,388,142). The cash balance at 31 December 2020 was $784,878 (31 December 2019: $705,452).

The Company has made significant progress in FY2020 providing a solid base for ongoing operations. The Board and Management of the Company are focused on using this base as a foundation for sustainable growth in FY2021 and beyond as well as exploring all other avenues available to it to strategically grow the business.

3. Net tangible assets

Net tangible assets per ordinary security	Reporting period Cents (0.55)	Previous period Cents (0.84)

4. Control gained over entities

Not applicable.

5. Loss of control over entities

Not applicable.

6. Dividends

Current period

There were no dividends paid, recommended or declared during the current financial period.

Previous period

There were no dividends paid, recommended or declared during the previous financial period.

Simble Solutions Limited and its controlled entities Appendix 4E Preliminary final report

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7. Dividend reinvestment plans

Not applicable.

8. Details of associates and joint venture entities

Not applicable.

9. Foreign entities

Details of origin of accounting standards used in compiling the report:

Not applicable.

10. Audit qualification or review

Details of audit/review dispute or qualification (if any):

The financial statements are in the process of being audited.

11. Attachments

Details of attachments (if any):

The Preliminary Financial Report of Simble Solutions Limited for the year ended 31 December 2020 is attached.

12. Signed

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Signed _________

Date: 26 February 2021

Ben Loiterton Chairman Sydney

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Simble Solutions Limited and its controlled entities ABN 17 608 419 656

Preliminary Financial Report - 31 December 2020

Simble Solutions Limited and its controlled entities Contents 31 December 2020

Consolidated statement of profit or loss and other comprehensive income 2 Consolidated statement of financial position 3 Consolidated statement of changes in equity 4 Consolidated statement of cash flows 5 Notes to the consolidated financial statements 6

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Simble Solutions Limited and its controlled entities Consolidated statement of profit or loss and other comprehensive income For the year ended 31 December 2020

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Note Revenue Revenue Cost of sales Gross margin Other income Interest revenue calculated using the effective interest method Expenses Marketing Administration 2 Impairment of goodwill Impairment/(recovery of impairment) of receivables Impairment of intangible assets Capital raising costs Finance costs 2 Loss before income tax expense Income tax expense Loss after income tax expense for the year attributable to the owners of Simble Solutions Limited Other comprehensive income/(loss) Items that may be reclassified subsequently to profit or loss Foreign currency translation Other comprehensive income/(loss) for the year, net of tax Total comprehensive loss for the year attributable to the owners of Simble Solutions Limited Basic loss per share 6 Diluted loss per share 6	Group Unaudited 2020 2019 $ $ 1,447,922 1,782,685 (529,271) (644,790)	Group Unaudited 2020 2019 $ $ 1,447,922 1,782,685 (529,271) (644,790)
	918,651	1,137,895
	446,896 2,261 (17,144) (2,188,339) - 42,026 - 3,052 (297,136)	307,259 57,067 (62,163) (4,759,876) (851,578) (21,281) (3,354,381) (178,495) (377,213)
	(1,089,733) -	(8,102,766) (7,953)
	(1,089,733) 128,648	(8,110,719) (32,942)
	128,648	(32,942)
	(961,085)	(8,143,661)
	Cents (0.54) (0.54)	Cents (6.72) (6.72)

The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes

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Simble Solutions Limited and its controlled entities Consolidated statement of financial position As at 31 December 2020

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Note Assets Current assets Cash and cash equivalents 3 Trade and other receivables Inventories Financial assets at fair value through profit or loss Finance lease receivable Other assets Total current assets Non-current assets Property, plant and equipment Finance lease receivable Deferred tax Other assets Total non-current assets Total assets Liabilities Current liabilities Trade and other payables Contract liabilities Borrowings 4 Lease liabilities Income tax Employee benefits Total current liabilities Non-current liabilities Contract liabilities Borrowings 4 Lease liabilities Deferred tax Total non-current liabilities Total liabilities Net liabilities Equity Issued capital 5 Shareholder capital Reserves Accumulated losses Total deficiency in equity	Group Unaudited 2020 2019 $ $ 784,878 705,452 306,805 480,775 47,688 122,975 24,651 24,651 228,367 - 249,589 222,671 1,641,978 1,556,524 403 - - 464,277 19,413 19,413 143,162 143,162 162,978 626,852 1,804,956 2,183,376 1,111,412 1,366,967 406,642 466,861 1,236,113 140,000 223,695 276,928 17,126 17,126 70,907 96,648 3,065,895 2,364,530 26,241 196,838 - 1,118,640 - 223,695 20,401 20,401 46,642 1,559,574 3,112,537 3,924,104 (1,307,581) (1,740,728) 23,075,010 21,543,678 - 137,100 2,979,223 2,850,575 (27,361,814) (26,272,081) (1,307,581) (1,740,728)
	1,641,978
	403 - 19,413 143,162
	162,978
	1,804,956
	1,111,412 406,642 1,236,113 223,695 17,126 70,907
	3,065,895
	26,241 - - 20,401
	46,642
	3,112,537
	(1,307,581)
	23,075,010 - 2,979,223 (27,361,814)
	(1,307,581)

The above consolidated statement of financial position should be read in conjunction with the accompanying notes

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Simble Solutions Limited and its controlled entities Consolidated statement of changes in equity For the year ended 31 December 2020

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Group Balance at 1 January 2019 Loss after income tax expense for the year Other comprehensive loss for the year, net of tax Total comprehensive loss for the year Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs (note 5) Shares to be issued Balance at 31 December 2019 Group Balance at 1 January 2020 Loss after income tax expense for the year Other comprehensive income for the year, net of tax Total comprehensive income/(loss) for the year Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs (note 5) Balance at 31 December 2020	Issued capital $ 18,553,963 - -	Shareholder capital $ - - -	Reserves $ 2,883,517 - (32,942)	Accumulated losses $ (18,161,362) (8,110,719) -	Total deficiency in equity $ 3,276,118 (8,110,719) (32,942)
	- 2,989,715 -	- - 137,100	(32,942) - -	(8,110,719) - -	(8,143,661) 2,989,715 137,100
	21,543,678	137,100	2,850,575	(26,272,081)	(1,740,728)
	Issued capital $ 21,543,678 - -	Shareholder capital $ 137,100 - -	Reserves $ 2,850,575 - 128,648	Accumulated losses $ (26,272,081) (1,089,733) -	Total deficiency in equity $ (1,740,728) (1,089,733) 128,648
	- 1,531,332	- (137,100)	128,648 -	(1,089,733) -	(961,085) 1,394,232
	23,075,010	-	2,979,223	(27,361,814)	(1,307,581)

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes

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Simble Solutions Limited and its controlled entities Consolidated statement of cash flows For the year ended 31 December 2020

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Note Cash flows from operating activities Receipts from customers (inclusive of GST) Payments to suppliers and employees (inclusive of GST) Interest received Research and development tax offset recovered Interest and other finance costs paid Income taxes refunded Net cash used in operating activities Cash flows from investing activities Payments for property, plant and equipment Payments for software development capitalised Proceeds from disposal of investments Proceeds from release of security deposits Loans from related parties Net cash used in investing activities Cash flows from financing activities Proceeds from issue of shares, net of transaction costs 5 Proceeds from shareholder capital Proceeds from trade finance Repayment of trade finance Proceeds from borrowings Proceeds from sub-lease Repayment of lease liabilities Net cash from financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Effects of exchange rate changes on cash and cash equivalents Cash and cash equivalents at the end of the financial year 3	Group Unaudited 2020 2019 $ $ 1,467,754 1,622,443 (3,151,140) (5,231,949) (1,683,386) (3,609,506) 2,261 57,067 446,896 439,651 (297,136) (276,950) - 1,596 (1,531,365) (3,388,142) (403) - - (1,060,357) - 52,122 20,170 33,620 (34,652) - (14,885) (974,615) 1,394,232 2,989,715 - 137,100 - 240,000 (140,000) (100,000) 283,814 1,032,777 235,910 204,500 (276,928) (252,379) 1,497,028 4,251,713 (49,222) (111,044) 705,452 849,438 128,648 (32,942) 784,878 705,452
	(1,683,386) 2,261 446,896 (297,136) -
	(1,531,365)
	(403) - - 20,170 (34,652)
	(14,885)
	1,394,232 - - (140,000) 283,814 235,910 (276,928)
	1,497,028
	(49,222) 705,452 128,648
	784,878

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes

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Simble Solutions Limited and its controlled entities Notes to the consolidated financial statements 31 December 2020

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Note 1. General information

The financial statements cover Simble Solutions Limited as a Group consisting of Simble Solutions Limited ('Company' or 'parent entity') and the entities it controlled at the end of, or during, the year (referred to in these financial statements as the 'Group'). The financial statements are presented in Australian dollars, which is Simble Solutions Limited's functional and presentation currency.

Simble Solutions Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business are:

Registered office

Principal place of business

C/O Boardroom Pty Limited Level 2 Level 12 383 George Street 225 George Street Sydney NSW 2000 Sydney NSW 2000

Note 2. Expenses

Loss before income tax includes the following specific expenses: Administration Minimum lease payments Employee benefits expense Superannuation Depreciation Amortisation General administration and other Total administration Finance costs Interest and finance charges paid/payable on borrowings Interest and finance charges paid/payable on lease liabilities Finance costs expensed	Group Unaudited 2020 2019 $ $ 38,403 30,861 643,142 1,225,849 83,429 133,676 - 46,349 - 760,936 1,423,365 2,562,205	Group Unaudited 2020 2019 $ $ 38,403 30,861 643,142 1,225,849 83,429 133,676 - 46,349 - 760,936 1,423,365 2,562,205
	2,188,339	4,759,876
	297,136 -	362,813 14,400
	297,136	377,213

Note 3. Cash and cash equivalents

Current assets Cash at bank Cash on deposit	Group Unaudited 2020 2019 $ $ 733,492 654,088 51,386 51,364	Group Unaudited 2020 2019 $ $ 733,492 654,088 51,386 51,364
	784,878	705,452

The above figures are reconciled to cash and cash equivalents at the end of the financial period in the statement of cash flows as shown above.

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Simble Solutions Limited and its controlled entities Notes to the consolidated financial statements 31 December 2020

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Note 4. Borrowings

Current liabilities Trade finance Convertible notes payable Non-current liabilities Convertible notes payable	Group Unaudited 2020 2019 $ $ - 140,000 1,236,113 -	Group Unaudited 2020 2019 $ $ - 140,000 1,236,113 -
	1,236,113	140,000
	-	1,118,640
	1,236,113	1,258,640

Convertible notes payable

During the prior year, the Company issued convertible notes.

The notes can be converted to ordinary shares by the noteholder delivering a conversion notice to the Company and may convert all or part of the notes between the date of issue and 31 December 2021. A noteholder is not entitled to redeem the notes before 31 December 2021 and has no right to convert the notes unless and until the issuer obtains shareholder approval. If approved, the number of shares to be issued on conversion of the notes will be calculated by dividing the number of notes to be converted by $0.15. Interest is payable on the notes at a rate of 10% per annum with interest accruing daily.

Total secured liabilities

The total secured liabilities are as follows:

Trade finance	Group Unaudited 2020 2019 $ $ - 140,000

Assets pledged as security

The trade finance is secured over the Group's related trade assets.

Note 5. Issued capital

Ordinary shares - fully paid	Unaudited 2020 Shares 238,264,534	Group 2019 Unaudited 2020 Shares $ 163,060,417 23,075,010	2019 $ 21,543,678

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Simble Solutions Limited and its controlled entities Notes to the consolidated financial statements 31 December 2020

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Note 5. Issued capital (continued)

Movements in ordinary share capital

Details Date Balance 1 January 2019 Issue of shares 1 August 2019 Issue of shares 24 September 2019 Issue of shares 5 November 2019 Share issue transaction costs Balance 31 December 2019 Issue of shares (December 2019 tranche 1) 6 January 2020 Issue of shares (March placement) 23 March 2020 Issue of shares (SPP) 30 March 2020 Issue of shares (December 2019 tranche 2) 8 May 2020 Issue of shares (October placement) 8 October 2020 Share issue transaction costs Balance 31 December 2020	Shares Issue price 103,248,334 25,812,083 $0.050 12,000,000 $0.050 22,000,000 $0.050 - $0.000 163,060,417 6,284,000 $0.025 20,833,335 $0.018 7,237,500 $0.016 4,400,000 $0.025 36,449,282 $0.023 - $0.000 238,264,534	$ 18,553,963 1,290,604 600,000 1,100,000 (889) 21,543,678 157,100 375,000 115,800 110,000 838,333 (64,901) 23,075,010

Note 6. Loss per share

Loss after income tax attributable to the owners of Simble Solutions Limited Weighted average number of ordinary shares used in calculating basic loss per share Weighted average number of ordinary shares used in calculating diluted loss per share Basic loss per share Diluted loss per share	Group Unaudited 2020 2019 $ $ (1,089,733) (8,110,719)	Group Unaudited 2020 2019 $ $ (1,089,733) (8,110,719)
	Number 202,228,087	Number 120,710,762
	202,228,087	120,710,762
	Cents (0.54) (0.54)	Cents (6.72) (6.72)

No dilution has been included as losses were incurred in the current and previous period.

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