VINYL GROUP LTD — Interim / Quarterly Report 2019

Oct 30, 2018

ASX CODE: MBO

ASX ANNOUNCEMENT AND MEDIA RELEASE

Date: 31 October 2018

Mobilarm has a strong quarter ahead of its reorganisation

• Receipts from customers of $2.4M for the quarter.

Global marine safety equipment provider Mobilarm Limited (ASX: MBO) today reported quarterly receipts from customers of $2.4M.

Mobilarm Chief Executive Officer Ken Gaunt commented: “Our man overboard business (MRT) had a strong cash flow quarter, from delivery of our Canadian order an ongoing growth in our short term rental portfolio. The completion of the sale of MRT and acquisition of Jaxsta are scheduled to close in November. ”

-Ends-

Further details Ken Gaunt Email: keng@mrtsos.com Chief Executive Officer Tel.: +61 417 961 770 Tel.: +44 782 731 4442 www.mobilarm.com

Mobilarm Limited (ASX: MBO) and its 100% owned subsidiary MRT (UK) is involved in the development, manufacturing and sale of a Man Overboard Safety Systems provided to the offshore oil & gas industries, commercial marine industries, defence, and government & regulatory agencies internationally. MBO currently operates in the UK, Australia, Nigeria and USA.

Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

+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

Name of entity	Name of entity
Mobilarm Limited
ABN Quarter ended (“current quarter”) 15 106 513 580 30 September 2018
15 106 513 580	30 September 2018

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter	Year to date (3
		$A’000	months)
			$A’000
1.	Cash flows from operating activities
1.1	Receipts from customers	2,404	2,404
1.2	Payments for
	(a) research and development	(59)	(59)
	(b) product manufacturing and operating	(306)	(306)
	costs
	(c) advertising and marketing	(1)	(1)
	(d) leased assets	-	-
	(e) staff costs	(346)	(346)
	(f) administration and corporate costs	(636)	(636)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	-	-
1.5	Interest and other costs of finance paid	(132)	(132)
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	924	924
	activities
2.	Cash flows from investing activities
2.1	Payments to acquire:
	(a) property, plant and equipment	-	-
	(b) businesses (see item 10)	-	-
	(c) investments	-	-

• See chapter 19 for defined terms

1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter	Year to date (3
		$A’000	months)
			$A’000
	(d) intellectual property	-	-
	(e) other non-current assets	-	-
2.2	Proceeds from disposal of:
	(a) property, plant and equipment	-	-
	(b) businesses (see item 10)	-	-
	(c) investments	-	-
	(d) intellectual property	-	-
	(e) other non-current assets	-	-
2.3	Cash flows from loans to other entities	265	265
2.4	Dividends received (see note 3)	-	-
2.5	Other (provide details if material)	-	-
2.6	Net cash from / (used in) investing	265	265
	activities
3.	Cash flows from financing activities
3.1	Proceeds from issues of shares	-	-
3.2	Proceeds from issue of convertible notes	-	1
3.3	Proceeds from exercise of share options	-	-
3.4	Transaction costs related to issues of	-	-
	shares, convertible notes or options
3.5	Proceeds from borrowings	-	-
3.6	Repayment of borrowings	(329)	(329)
3.7	Transaction costs related to loans and	-	-
	borrowings
3.8	Dividends paid	-	-
3.9	Other (provide details if material)	-	-
3.10	Net cash from / (used in) financing	(329)	(329)
	activities
4.	Net increase / (decrease) in cash and
	cash equivalents for the period
4.1	Cash and cash equivalents at beginning of
	quarter/year to date	380	380
4.2	Net cash from / (used in) operating	924	924
	activities (item 1.9 above)
4.3	Net cash from / (used in) investing activities	265	265
	(item 2.6 above)
4.4	Net cash from / (used in) financing activities	(329)	(329)
	(item 3.10 above)

• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter	Year to date (3
		$A’000	months)
			$A’000
4.5	Effect of movement in exchange rates on	-	-
	cash held
4.6	Cash and cash equivalents at end of	1,240	1,240
	quarter

5.	Reconciliation of cash and cash	Current quarter	Previous quarter
	equivalents	$A’000	$A’000
	at the end of the quarter (as shown in the
	consolidated statement of cash flows) to the
	related items in the accounts
5.1	Bank balances	1,240	380
5.2	Call deposits	-	-
5.3	Bank overdrafts	-	-
5.4	Other (provide details)	-	-
5.5	Cash and cash equivalents at end of	1,240	380
	quarter (should equal item 4.6 above)

6.	Payments to directors of the entity and their associates	Current quarter
		$A'000
6.1	Aggregate amount of payments to these parties included in item 1.2		82
6.2	Aggregate amount of cash flow from loans to these parties included		-
	in item 2.3
6.3	Include below any explanation necessary to understand the transactions included in
	items 6.1 and 6.2

Payments were for salaries or director fees and travel expenses.

7. Payments to related entities of the entity and their associates 7.1 Aggregate amount of payments to these parties included in item 1.2 7.2 Aggregate amount of cash flow from loans to these parties included in item 2.3	Current quarter $A'000 - -

• 7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

8.	Financing facilities available	Total facility amount	Amount drawn at
	Add notes as necessary for an	at quarter end	quarter end
	understanding of the position	$A’000	$A’000
8.1	Loan facilities	$4,430	$4,430
8.2	Credit standby arrangements
8.3	Other (please specify)

• 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.

The Company also has an additional $971,525 in convertible debt, convertible that expires on the 7th of March 2017 and carries an interest rate of 6.0%. The Company also increased the size of the facility by a further $700,000 convertible at the Company’s option at the price of $0.007 per share. The Company has drawn $700,000 of this facility. The notes is convertible by the noteholder upon giving the Company thirty days notice or by the Company providing the Noteholder thirty days notice, both at the price of $0.007 per share. As part of the Jaxsta acquisition, the Noteholder has agreed to convert at $0.0125 per share and was approved by shareholders on 17 August 2018.

The Company entered into a $2,000,000 convertible note facility on the 30th of September 2016. The facility carries a 12% interest rate and is convertible at the lower of $0.04 per share or the price of any future capital transaction during the term of the note. The Company has drawn $1,920,000 of this facility. As part of the Jaxsta acquisition, the Noteholder has agreed to convert at $0.0125 per share and was approved by shareholders on 17 August 2018.

The Company entered into a £210,000 export finance loan in February 2018 to fund the build a customer order. The loan is secured by secured by the UK Export Finance group as well as the customer order. The Company drew down £184,502 and repaid the loan on 26 July 2018.

9.	Estimated cash outflows for next quarter	$A’000
9.1	Research and development		(75)
9.2	Product manufacturing and operating costs		(300)
9.3	Advertising and marketing		(5)
9.4	Leased assets		-
9.5	Staff costs		(1,225)
9.6	Administration and corporate costs		(850)
9.7	Other		(70)
9.8	Total estimated cash outflows		(2,525)

10.	Acquisitions and disposals of	Acquisitions	Disposals
	business entities
	(items 2.1(b) and 2.2(b) above)
10.1	Name of entity
10.2	Place of incorporation or
	registration
10.3	Consideration for acquisition or
	disposal
10.4	Total net assets
10.5	Nature of business

• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly 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.

31 October 2018 Sign here: ............................................................ Date: ............................................. (Director) Jorge Nigaglioni Print name: .........................................................

Notes

1. The quarterly report provides a basis for informing the market how the entity’s 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.

4. See chapter 19 for defined terms 1 September 2016

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