SIMBLE SOLUTIONS LIMITED — Interim / Quarterly Report 2019

Aug 28, 2019

Simble Solutions Limited and its controlled entities Appendix 4D Half-year report

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1. Company details

Name of entity: Simble Solutions Limited ABN: 17 608 419 656 Reporting period: For the half-year ended 30 June 2019 Previous period: For the half-year ended 30 June 2018

2. Results for announcement to the market

The Group has adopted Accounting Standards AASB 16 ‘Leases’ for the half-year ended 30 June 2019. The Accounting Standard has been applied using the modified retrospective method and comparatives have not been restated.

			$
Revenues from all activities	up	8.4% to	1,498,498
Revenues from ordinary activities	down	7.9% to	1,056,272
Loss from ordinary activities after tax attributable to the owners of Simble
Solutions Limited	down	65.5% to	(1,481,763)
Loss for the half-year attributable to the owners of Simble Solutions
Limited	down	65.5% to	(1,481,763)

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 $1,481,763 (30 June 2018: $4,291,194).

Simble Solutions Limited earned revenue, interest and other income for the half-year ended 30 June 2019 of $1,498,498 versus $1,382,872 in the prior half year ended 30 June 2018, an increase of 8.4%.

Operating revenues from the Simble Energy division (excluding R&D) amounted to $494,469, an increase of 72% compared to $287,428 during the prior half. Operating revenues in the UK increased to $257,853, a 601% increase over the prior half.

For further details on the half year results, refer to the Review of operations contained in the attached Interim report.

3. Net tangible assets

Net tangible assets per ordinary security	Reporting period Cents (2.32)	Previous period Cents (0.54)

4. Control gained over entities

Not applicable.

5. Loss of control over entities

Not applicable.

Simble Solutions Limited and its controlled entities Appendix 4D Half-year report

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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.

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 were subject to a review by the auditors and the review report is attached as part of the Interim Report.

11. Attachments

Details of attachments (if any):

The Interim Report of Simble Solutions Limited for the half-year ended 30 June 2019 is attached.

12. Signed

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Signed _________

Date: 29 August 2019

Fadi Geha Director Sydney

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

Interim Report - 30 June 2019

Simble Solutions Limited and its controlled entities
Contents
30 June 2019
Directors' report	2
Auditor's independence declaration	4
Consolidated statement of profit or loss and other comprehensive income	5
Consolidated statement of financial position	6
Consolidated statement of changes in equity	7
Consolidated statement of cash flows	8
Notes to the consolidated financial statements	9
Directors' declaration	15
Independent auditor's review report to the members of Simble Solutions Limited	16

1

Simble Solutions Limited and its controlled entities Directors' report 30 June 2019

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The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'Group') consisting of Simble Solutions Limited (referred to hereafter as the 'Company' or 'parent entity') and the entities it controlled at the end of, or during, the half-year ended 30 June 2019.

Directors

The following persons were directors of Simble Solutions Limited during the whole of the financial half-year and up to the date of this report, unless otherwise stated:

Philip Tye (Chairman) Fadi Geha Ben Loiterton (appointed 24 July 2019) David Lawrence Astill (resigned 24 July 2019)

Principal activities

During the financial half-year, the principal continuing activities of the Group consisted of providing and developing Software as a Service ('SaaS') for businesses and organisations seeking energy management and mobility solutions.

Dividends

There were no dividends paid, recommended or declared during the current or previous financial half-year.

Review of operations

Simble Solutions Limited earned revenue, interest and other income for the half-year ended 30 June 2019 of $1,498,498 versus $1,382,872 in the prior half year ended 30 June 2018, an increase of 8.4%. Revenues from ordinary activities amounted to $1,056,272 (30 June 2018: $1,146,977).

Operating revenues from the Simble Energy division (excluding R&D) totalled $494,469, an increase of 72% compared to $287,428 during the prior half. The key driver behind the increase in revenues is an increase in sales activity via Simble’s partner network, especially in the UK, resulting in Software-as-a-Service ('SaaS'), Services and Hardware revenues.

Operating revenues in the UK increased to $257,853, up 601% from $36,787 in the prior half, as the Company signed material deals and secured additional smaller contract wins. Management anticipates this business unit to become the cornerstone of Simble’s growth strategy.

Global SaaS and Services revenues increased circa three-fold due to an increase in on-boarded customers and the addition of new product lines, including software-only solution SimbleConnect. Hardware revenues declined 26%, primarily due to the timing of a large stocking order that was placed in the prior half year period. While hardware revenues are recognised immediately, SaaS revenues are recognised on a pro-rata basis over the contract term and Simble anticipates this revenue stream to further strengthen the Company’s recurring revenue base.

Operating revenues from the Mobility division declined 32% to $506,304 during the period (30 June 2018: 747,700) as resources were focused on the core strategic energy business.

Other income increased to $429,271 (30 June 2018: $231,812), primarily consisting of Research and Development tax incentives.

The loss for the Group after providing for income tax amounted to $1,481,763 (30 June 2018: $4,291,194).

The Group has significantly reduced operating costs, with the introduction of its Lean Operating model, with operating expenses decreasing to $2,107,157 for the six months to 30 June 2019 from $3,825,581 for the six months to 30 June 2018. This decrease represents an improvement of $1,718,424 or 45% for the six months. Total expenses including Amortisation and Depreciation were $2,571,903 (30 June 2018: 5,153,696).

Net cash used in operating activities improved to $838,529 compared to $4,457,453 in June 2018. The cash balance at 30 June 2019 was $376,710 (30 June 2018: $1,429,356). Subsequent to June 30, Simble announced the successful completion of a $1.89 million placement to professional and sophisticated investors.

Underlying earnings before interest, tax, depreciation and amortisation ('EBITDA') is a key measurement used by management and the Board to assess and review business performance and accordingly the table below provides a reconciliation between statutory net loss and underlying EBITDA.

2

Simble Solutions Limited and its controlled entities Directors' report 30 June 2019

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Loss after income tax benefit Add-back: Interest Depreciation Amortisation Statutory EBITDA Add-back: Non-recurring IPO and capital raising costs Underlying EBITDA	Consolidated 2019 $ (1,481,763) 132,388 84,278 380,468
	(884,629) 57,691
	(826,938)

The Board and Management continue to monitor costs and cash management, and this includes an assessment of all options and opportunities to improve shareholder value.

Significant changes in the state of affairs

In February 2019, March 2019 and May 2019, the Company raised $650,000, $285,000 and $100,000 respectively by way of unsecured convertible notes. The notes are convertible on or before 31 December 2021 at a conversion price of 15 cents and bear interest at 10% per annum.

On 2 April 2019, the 13,500,000 Class A and 1,500,000 Class C performance shares, issued as part of the Group's initial public offering in 2019, lapsed as the performance criteria was not met.

There were no other significant changes in the state of affairs of the Group during the financial half-year.

Auditor's independence declaration

A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out immediately after this directors' report.

This report is made in accordance with a resolution of directors.

On behalf of the directors

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---

Fadi Geha Director

29 August 2019 Sydney

3

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Simble Solutions Limited

Auditor’s independence declaration under section 307c of the Corporations Act 2001

I declare that, to the best of my knowledge and belief during the half-year ended 30 June 2019 there have been:

• No contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the review; and

• No contraventions of any applicable code of professional conduct in relation to the review.

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William Buck

Accountants & Advisors ABN 16 021 300 521

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L E. Tutt

Partner Sydney, 29 August 2019

ACCOUNTANTS & ADVISORS Sydney Office Level 29, 66 Goulburn Street Sydney NSW 2000

Parramatta Office Level 7, 3 Horwood Place Parramatta NSW 2150

Telephone: +61 2 8263 4000 williambuck.com

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4

William Buck is an association of firms, each trading under the name of William Buck across Australia and New Zealand with affiliated offices worldwide. Liability limited by a scheme approved under Professional Standards Legislation other than for acts or omissions of financial services licensees.

Simble Solutions Limited and its controlled entities Consolidated statement of profit or loss and other comprehensive income For the half-year ended 30 June 2019

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Note Revenue Revenue 4 Cost of sales Gross margin Other income 5 Interest revenue calculated using the effective interest method Expenses Marketing Administration 6 Impairment of assets Initial Public Offering expenses Finance costs Loss before income tax expense Income tax expense Loss after income tax expense for the half-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 half-year, net of tax Total comprehensive loss for the half-year attributable to the owners of Simble Solutions Limited Basic loss per share 11 Diluted loss per share 11	Consolidated 2019 2018 $ $ 1,056,272 1,146,977 (401,393) (520,370) 654,879 626,607 429,271 231,812 12,955 4,083 (29,414) (90,350) (2,407,076) (4,132,835) (1,173) - - (742,780) (134,240) (187,731) (1,474,798) (4,291,194) (6,965) - (1,481,763) (4,291,194) 15,192 (37,888) 15,192 (37,888) (1,466,571) (4,329,082) Cents Cents (1.44) (6.06) (1.42) (6.06)
	654,879
	429,271 12,955 (29,414) (2,407,076) (1,173) - (134,240)
	(1,474,798) (6,965)
	(1,481,763) 15,192
	15,192
	(1,466,571)
	Cents (1.44) (1.42)

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

5

Simble Solutions Limited and its controlled entities Consolidated statement of financial position As at 30 June 2019

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Note Assets Current assets Cash and cash equivalents Trade and other receivables 7 Inventories Financial assets at fair value through profit or loss Other Total current assets Non-current assets Property, plant and equipment Finance lease receivable Intangibles Other deposits Total non-current assets Total assets Liabilities Current liabilities Trade and other payables Contract liabilities Borrowings 8 Lease liabilities Income tax Employee benefits Deferred grant liabilities Total current liabilities Non-current liabilities Contract liabilities Lease liabilities Employee benefits Deferred grant liabilities Total non-current liabilities Total liabilities Net assets Equity Issued capital Reserves Accumulated losses Total equity	Consolidated 2019 2018 $ $ 376,710 849,438 1,006,220 589,164 120,633 30,335 34,365 76,773 335,750 325,675 1,873,678 1,871,385 - 46,349 573,763 - 4,202,930 3,906,538 143,162 143,162 4,919,855 4,096,049 6,793,533 5,967,434 1,994,197 1,235,649 820,427 831,273 1,032,789 - 264,445 - 17,030 8,565 116,849 123,569 94,591 94,591 4,340,328 2,293,647 194,798 179,322 362,367 - 39,197 55,752 47,296 94,591 643,658 329,665 4,983,986 2,623,312 1,809,547 3,344,122 18,553,963 18,553,963 2,898,709 2,883,517 (19,643,125) (18,093,358) 1,809,547 3,344,122
	1,873,678
	- 573,763 4,202,930 143,162
	4,919,855
	6,793,533
	1,994,197 820,427 1,032,789 264,445 17,030 116,849 94,591
	4,340,328
	194,798 362,367 39,197 47,296
	643,658
	4,983,986
	1,809,547
	18,553,963 2,898,709 (19,643,125)
	1,809,547

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

6

Simble Solutions Limited and its controlled entities Consolidated statement of changes in equity For the half-year ended 30 June 2019

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Consolidated Balance at 1 January 2018 Loss after income tax expense for the half-year Other comprehensive loss for the half-year, net of tax Total comprehensive loss for the half-year Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs Share-based payments Common control transaction Balance at 30 June 2018 Consolidated Balance at 1 January 2019 Adjustment to retained earnings on adoption of AASB 16 Balance at 1 January 2019 - restated Loss after income tax expense for the half-year Other comprehensive income for the half-year, net of tax Total comprehensive income/(loss) for the half-year Balance at 30 June 2019	Issued capital $ 4,200,100 - -		Reserves		Accumulated losses $ (10,373,660) (4,291,194) -	Total equity $ (2,834,203) (4,291,194) (37,888)
		Common control reserve $ 250,836 - -	Foreign currency translation reserve $ (36,529) - (37,888)	Share-based payments reserve $ 3,125,050 - -
	- 12,491,536 - -	- - - 17,647	(37,888) - - -	- - (374,050) -	(4,291,194) - - -	(4,329,082) 12,491,536 (374,050) 17,647
	16,691,636	268,483	(74,417)	2,751,000	(14,664,854)	4,971,848
	Issued capital $ 18,553,963 -		Reserves		Accumulated losses $ (18,093,358) (68,004)	Total equity $ 3,344,122 (68,004)
		Common control reserve $ 250,836 -	Foreign currency translation reserve $ (118,319) -	Share-based payments reserve $ 2,751,000 -
	18,553,963 - -	250,836 - -	(118,319) - 15,192	2,751,000 - -	(18,161,362) (1,481,763) -	3,276,118 (1,481,763) 15,192
	-	-	15,192	-	(1,481,763)	(1,466,571)
	18,553,963	250,836	(103,127)	2,751,000	(19,643,125)	1,809,547

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

7

Simble Solutions Limited and its controlled entities Consolidated statement of cash flows For the half-year ended 30 June 2019

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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 incentive received Interest and other finance costs paid Income taxes refunded Income taxes paid Net cash used in operating activities Cash flows from investing activities Payments for property, plant and equipment Payments for intangibles Payments for security deposits Proceeds from disposal of investments Proceeds from disposal of property, plant and equipment Proceeds from release of security deposits Net cash used in investing activities Cash flows from financing activities Proceeds from issue of shares Share issue transaction costs Proceeds from issue of convertible notes Proceeds from borrowings Repayment of borrowings Net cash from financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the financial half-year Effects of exchange rate changes on cash and cash equivalents Cash and cash equivalents at the end of the financial half-year	Consolidated 2019 2018 $ $ 1,175,446 784,163 (1,911,237) (4,552,162) (735,791) (3,767,999) 12,955 4,083 30,800 41,000 (91,801) (645,984) 1,500 - - (88,553) (782,337) (4,457,453) - (11,489) (886,669) (480,501) - (9,285) 55,190 29,865 3,585 - 13,604 - (814,290) (471,410) - 7,500,000 - (1,069,296) 1,032,789 - 74,107 - - (80,000) 1,106,896 6,350,704 (489,731) 1,421,841 849,438 45,303 17,003 (37,788) 376,710 1,429,356
	(735,791) 12,955 30,800 (91,801) 1,500 -
	(782,337)
	- (886,669) - 55,190 3,585 13,604
	(814,290)
	- - 1,032,789 74,107 -
	1,106,896
	(489,731) 849,438 17,003
	376,710

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

8

Simble Solutions Limited and its controlled entities Notes to the consolidated financial statements 30 June 2019

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Note 1. General information

The financial statements cover Simble Solutions Limited as a Group consisting of Simble Solutions Limited and the entities it controlled at the end of, or during, the half-year. 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

A description of the nature of the Group's operations and its principal activities are included in the directors' report, which is not part of the financial statements.

The financial statements were authorised for issue, in accordance with a resolution of directors, on 29 August 2019.

Note 2. Significant accounting policies

These general purpose financial statements for the interim half-year reporting period ended 30 June 2019 have been prepared in accordance with Australian Accounting Standard AASB 134 'Interim Financial Reporting' and the Corporations Act 2001, as appropriate for for-profit oriented entities. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 'Interim Financial Reporting'.

These general purpose financial statements do not include all the notes of the type normally included in annual financial statements. Accordingly, these financial statements are to be read in conjunction with the annual report for the year ended 31 December 2018 and any public announcements made by the Company during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

The same accounting policies and methods of computation have been followed in this interim financial report and were applied in the most recent annual financial statements.

New or amended Accounting Standards and Interpretations adopted

The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.

Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

The following Accounting Standards and Interpretations are most relevant to the Group:

AASB 16 Leases

This standard is applicable to annual reporting periods beginning on or after 1 January 2019. AASB 16 replaces AASB 117 'Leases' and sets out a comprehensive model for identifying lease arrangement and the subsequent measurement. A contract contains a lease if it conveys the right to control the use of an identified asset for a period of time. The majority of leases from the lessee perspective within the scope of AASB 16 will require the recognition of ‘right-of-use’ asset and a related lease liability, being present value of future lease payments. This will result in an increase in the recognised assets and liabilities in the statement of financial position as well as a change in expense recognition, with interest and depreciation replacing lease expense, with the exception of leases of low value assets and leases with a term of 12 months or less.

The primary impact from adoption of AASB 16 by the Group was the treatment of office premises and leased office equipment with terms of 12 months or more across the Group. The adoption of AASB 16 increased both assets and liabilities due to the recognition of right-of-use assets and lease liabilities respectively and expense relating to minimum lease payments reduced with an increase in interest expense.

9

Simble Solutions Limited and its controlled entities Notes to the consolidated financial statements 30 June 2019

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Note 2. Significant accounting policies (continued)

Impact of adoption

AASB 16 was adopted using the modified retrospective approach and as such the comparatives have not been restated. The impact of adoption on opening retained profits as at 1 January 2019 was as follows:

Operating lease commitments as at 1 January 2019 (AASB 117) Discount based on the weighted average incremental borrowing rate Lease liabilities - recognised as at 1 January 2019 Right-of-use assets (AASB 16) Lease liabilities - current (AASB 16) Lease liabilities - non-current (AASB 16) Increase in opening accumulated losses as at 1 January 2019	1 January 2019 $ 811,226
	753,002
	753,002
	684,998 (252,739) (500,263)
	(68,004)

On 1 January 2019, the right-of-use asset was recorded under AASB 16. On 1 March 2019 the Group entered into a sublease with an independent third party. The sub-lease is classified as a finance lease receivable in accordance with AASB 16 'Leases'. Accordingly, on 1 March 2019 the right-of-use asset was derecognised and a finance lease receivable recorded in the statement of financial position to reflect the transaction.

Changes to accounting policies

Changes to accounting policies detailed in the 31 December 2018 Annual report as a result of the adoption of the new accounting standard are detailed as follows:

Right-of-use assets (from 1 January 2019)

A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in the cost of inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and restoring the site or asset.

Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life of the asset, whichever is the shorter. Where the Group expects to obtain ownership of the leased asset at the end of the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or adjusted for any re-measurement of lease liabilities.

The Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss as incurred.

Lease liabilities (from 1 January 2019)

A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group's incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on an index or a rate are expensed in the period in which they are incurred.

Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if there is a change in the following: future lease payments arising from a change in an index or a rate used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down.

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Simble Solutions Limited and its controlled entities Notes to the consolidated financial statements 30 June 2019

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Note 2. Significant accounting policies (continued)

Working capital deficiency

The statement of profit or loss and other comprehensive income for the half-year ended 30 June 2019 reflects a consolidated Group loss of $1,481,763 (30 June 2018: $4,291,194) and the statement of financial position reflects net current liabilities of $2,466,650 (31 December 2018: $422,262). Net assets for the half-year ended 30 June 2019 are $1,809,547 (31 December 2018: $3,344,122). The statement of cash flows reflects net cash outflows from operations of $782,337 (30 June 2018: $4,457,453).

The Directors have reviewed the cash flow forecast for the Group through to 31 August 2020. The forecast indicates that the Group will be able to pay its debts as and when they fall due after considering the following factors:

• As at 30 June 2019, the Group had available cash resources of $376,710;

• On 24 July 2019, the company announced completion of a $1,890,000 placement;

• The Group is at various stages of negotiations with a number of potential customers and it is expected that these negotiations will result in additional revenue to be earned by the Group within the next 12 months; and

• The Group has significantly reduced operating costs, with the introduction of its Lean Operating model, with operating expenses decreasing to $2,107,157 for the six months to 30 June 2019 from $3,825,581 for the six months to 30 June 2018. This decrease represents an improvement of $1,718,424 or 45% for the six months.

The Directors are confident that the Group will achieve successful outcomes in relation to the above matters, and that it is therefore appropriate to prepare the financial statements on the going concern basis and that the Group will be able to pay its debts as and when they become due and payable from available cash resources, operating cash flows and the additional capital raised.

The consolidated financial report does not include any adjustments relating to the recoverability and classifications of recorded asset amounts or to the amount and classification of liabilities that might be necessary should the Group not continue as a going concern.

Note 3. Operating segments

Identification of reportable operating segments

The Group operates in one segment, based on the internal reports that are reviewed and used by the Board of Directors (who are identified as the Chief Operating Decision Makers ('CODM')) in assessing performance and in determining the allocation of resources.

As a result, the operating segment information is disclosed in the statement and notes to the financial statements.

Note 4. Revenue

Rendering of services and sale of goods	Consolidated 2019 2018 $ $ 1,056,272 1,146,977

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Simble Solutions Limited and its controlled entities Notes to the consolidated financial statements 30 June 2019

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Note 4. Revenue (continued)

Disaggregation of revenue

The disaggregation of revenue from contracts with customers is as follows:

Geographical regions Australia United Kingdom New Zealand Timing of revenue recognition Goods transferred over time Goods transferred at a point in time Note 5. Other income Research and development tax incentive Note 6. Expenses Administration Minimum lease payments Employee benefits expense Superannuation Depreciation Amortisation Research and development expenses Loss on sale of investments General administration and other

Consolidated 2019 2018 $ $ 785,934 1,085,693 257,853 36,787 12,485 24,497 1,056,272 1,146,977 777,053 877,253 279,219 269,724 1,056,272 1,146,977 Consolidated 2019 2018 $ $ 429,271 231,812 Consolidated 2019 2018 $ $ - 184,417 506,242 1,066,422 43,264 99,770 84,278 14,368 380,468 1,313,747 - 255,684 14,947 - 1,377,877 1,198,427 2,407,076 4,132,835

2,407,076

12

Simble Solutions Limited and its controlled entities Notes to the consolidated financial statements 30 June 2019

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Note 7. Current assets - trade and other receivables

Trade receivables Less: Allowance for expected credit losses Other receivables Goods and services tax recoverable Research and development tax incentive recoverable Note 8. Current liabilities - borrowings Convertible notes - at fair value	Consolidated 2019 2018 $ $ 450,414 453,075 (42,288) (41,179) 408,126 411,896 26,217 - 91,824 44,876 480,053 132,392 1,006,220 589,164 Consolidated 2019 2018 $ $ 1,032,789 -

Note 8. Current liabilities - borrowings

Convertible notes - at fair value

During the period, 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 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.

Note 9. Equity - dividends

There were no dividends paid, recommended or declared during the current or previous financial half-year.

Note 10. Contingent liabilities

The Group has no contingent liabilities at 30 June 2019 and 31 December 2018.

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Simble Solutions Limited and its controlled entities Notes to the consolidated financial statements 30 June 2019

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Note 11. 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 Adjustments for calculation of diluted earnings per share: Convertible notes Weighted average number of ordinary shares used in calculating diluted loss per share Basic loss per share Diluted loss per share	Consolidated 2019 2018 $ $ (1,481,763) (4,291,194)	Consolidated 2019 2018 $ $ (1,481,763) (4,291,194)
	Number 103,248,334 935,000	Number 70,838,267 -
	104,183,334	70,838,267
	Cents (1.44) (1.42)	Cents (6.06) (6.06)

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

Note 12. Events after the reporting period

On 24 July 2019, the Company announced completion of a $1,890,000 placement to investors via the issue of up to 37,800,000 fully paid ordinary shares at $0.05 per share. Placement will settle in two tranches. Tranche 1 by the issue of 25,800,000 fully paid ordinary shares at $0.05 per share to raise gross proceeds of $1,290,000. Tranche 2 by issuing up to 12,000,000 fully paid ordinary shares at $0.05 to raise up to $600,000 subject to shareholder approval at a General Meeting. Further details can be found on the ASX announcements.

On 16 August 2019, William Buck was appointed auditor of the Group following the outcome of an audit tender process undertaken by the Directors.

No other matter or circumstance has arisen since 30 June 2019 that has significantly affected, or may significantly affect the Group's operations, the results of those operations, or the Group's state of affairs in future financial years.

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Simble Solutions Limited and its controlled entities Directors' declaration 30 June 2019

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In the directors' opinion:

• the attached financial statements and notes comply with Australian Accounting Standard AASB 134 'Interim Financial Reporting', the Corporations Regulations 2001 and other mandatory professional reporting requirements;

• the attached financial statements and notes give a true and fair view of the Group's financial position as at 30 June 2019 and of its performance for the financial half-year ended on that date; and

• there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of directors.

On behalf of the directors

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_________ Fadi Geha Director 29 August 2019 Sydney

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Simble Solutions Limited

Independent auditor’s review report to members

Report on the Review of the Half-Year Financial Report

Conclusion

We have reviewed the accompanying half-year financial report of Simble Solutions Limited (the company) and the entities it controlled at the half-year’s end or from time to time during the half year (the consolidated entity) on pages 2 to 15, which comprises the consolidated statement of financial position as at 30 June 2019, the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration.

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Simble Solutions Limited on pages 2 to 15 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 30 June 2019 and of its performance for the half year ended on that date; and

• b) complying with Australian Accounting Standard 134 Interim Financial Reporting and the Corporations Regulations 2001.

Material Uncertainty Related to Going Concern

We draw attention to Note 2 in the half-year financial report, which indicates that the consolidated entity incurred a net loss of $1,481,763 during the half year ended 30 June 2019 and, as of that date, the consolidated entity’s current liabilities exceeded its current assets by $2,466,650. As stated in Note 2, these events or conditions, along with other matters as set forth in Note 2 indicate that a material uncertainty exists that may cast significant doubt on the consolidated entity’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Responsibilities of the Directors for the Half-Year Financial Report

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

Auditor’s Responsibilities for the Review of the Half-Year Financial Report

Our responsibility is to express a conclusion on the half-year 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

ACCOUNTANTS & ADVISORS

Sydney Office Level 29, 66 Goulburn Street Sydney NSW 2000

Parramatta Office Level 7, 3 Horwood Place Parramatta NSW 2150

Telephone: +61 2 8263 4000 williambuck.com

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William Buck is an association of firms, each trading under the name of William Buck across Australia and New Zealand with affiliated offices worldwide. Liability limited by a scheme approved under Professional Standards Legislation other than for acts or omissions of financial services licensees.

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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 30 June 2019 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 Simble Solutions Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year 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.

Independence

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

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William Buck

Accountants & Advisors

ABN: 16 021 300 521

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L.E. Tutt

Partner Sydney, 29 August 2019

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