DomaCom : Appendix 4D & Half Year Financial Report - 31 December 2021

DomaCom Limited and its controlled entities ("DCL")

Appendix 4D - Half Year Report for the period ended 31 December 2021

Results for Announcement to the market

Refer to attached Directors' Report for explanation of results.

Dividends

There is no dividend reinvestment plan in place.

There are no entities over which control has been gained or lost during the period. There were no associates or joint ventures during the period.

The financial report has been subject to independent review by the Company's auditors. The review report is unqualified and contains an "emphasis of matter" paragraph in respect of "Material uncertainty related to going concern". Note 1 to the financial report provides full disclosure of the factors considered by the Company and the auditors. The continuing viability of the Company and its ability to continue as a going concern is dependent upon being successful in continuing to grow Funds under Management, controlling costs and raising further capital in the short to medium term. Note 1 sets out the growth strategies in place. In addition it explains the recent successful capital raises undertaken as part of the ongoing capital management process.

Authorised for release to the market by Philip Chard, Company Secretary

1 April 2022

DomaCom Limited

Financial report for the half-year ended 31 December 2021

ABN 69 604 384 885

DIRECTORS' REPORT 31 DECEMBER 2021

Your directors present their report on DomaCom Limited (the "Company") and its Controlled Entities (the "Group") for the half-year ended 31 December 2021.

Director Details

The following persons were Directors of DomaCom Limited during and since the end of the financial half-year:

• • Mr Grahame D Evans (Chairman and Non-Executive Director)

• • Mr David H Archbold (Non-Executive Director) (resigned 24 August 2021)

• • Mr Peter C Church OAM (Non-Executive Director) (resigned 24 August 2021)

• • Mr George D Paxton (Non-Executive Director)

• • Mr Matthew Roberts (Non-Executive Director)

• • Mr Hilal Yassine (Non-Executive Director) (appointed 17 March 2021)

• • Mr Arthur Naoumidis (CEO and Executive Director)

• • Mr Ross A Laidlaw (COO and Executive Director)

Review of operations and financial results

The operating result of the Group for the half-year ended 31 December 2021 was a loss of $2.9 million (2020: $2.6 million loss).

DomaCom derives fee revenue based on the assets under management in the DomaCom Fund. The fee revenue increased to $393,830 for the six months to 31 December 2021 compared to $218,823 for the comparable six month period.

The total funds under management as at 31 December 2021 was $99 million ($83 million at 30 June 2021). This is represented by 46% held in Property assets, 32% held in loans backed by first registered mortgages and 22% held in cash.

The operating costs include the costs of developing the DomaCom Platform, general staff costs and costs incurred in distributing and marketing the DomaCom products into our distribution channels. DomaCom continues to focus on tightly controlling costs.

The loss per share of $0.01 (2020: $0.01 loss per share) has remained stable compared to the prior reporting period.

Capital raising activities undertaken during the period included a private placement of $2.0 million on 10 November 2021. In addition a Rights Issue on 8 September 2021 with a Shortfall Offer on 2 December 2021 raised $1.7 million. This additional funding allows DomaCom to continue to develop the DomaCom Platform and provides funding to meet ongoing working capital requirements. In addition, as part of the ongoing capital management strategy, the maturity date of the $2,950,000 Secured Convertible Note was extended to 1 February 2023. DomaCom was suspended from the ASX in the prior period on 11 May 2021 to allow information to be provided on the ongoing AustAgri transaction. Subsequently the ASX asked that DomaCom remain suspended until the cash reserves had been increased through capital raising. On 1 December 2021 DomaCom made a submission to the ASX for reinstatement to quotation. On 28 January 2022, after a period of consultation, the ASX confirmed that a further capital raise was required before reinstatement can occur. DomaCom has therefore commenced a capital raise of up to $2.3m at a price of $0.066 through a placement to sophisticated and professional investors.

It is pleasing to report that throughout this difficult period of being suspended from the ASX DomaCom was still able to grow its Funds Under Management by just under 20% during the six month period to 31 December 2021. This demonstrates the strong belief in the fractional investment model amongst pro-active distribution partners and financial planners.

During this period DomaCom has created over 30 new sub-funds which each hold an individual property. A common theme over the last six months has been the interest in the National Disability Housing Insurance Scheme (NDIS). Our clients have been able to invest into House and Land packages that have been specifically designed for NDIS recipients wishing to move into independent living arrangements with on-site carers. Our

DIRECTORS' REPORT 31 DECEMBER 2021

investors have not only supported the increase in the supply of NDIS housing but also will benefit from the expected returns from the income yields generated by the properties.

Equity Mortgage

DomaCom has reported previously that it had entered into an agreement with Crescent Group which will enable it to deliver a Shariah-compliant mortgage product. This will target the Australian Islamic communities who, in accordance with their religion, are prohibited from borrowing money. During the last six months the Equity Mortgage product was approved by the Trustee and is now included in our Product Disclosure Statement. The next step, which we are in the process of approving with the Trustee, is the creation of the Crescent Growth and Income Sub-Funds, which will allow our distribution partner Crescent Group to have a shariah compliant product that they can market to their Australian Islamic clients.

DomaCom continues to innovate and adapt its fractional investment model to meet the demands and needs of its clients. Today DomaCom already fractionalises residential properties, commercial properties, rural properties, and NDIS properties. It also has the ability to fractionalise not only the capital/equity side of the investment but can also fractionalise the debt component. It has also been able to adapt its platform for the growth in the renewable energy sector to provide exposure to this important and growing sector.

AustAgri

AustAgri subsidiary Global Meat Exports Pty Ltd ("GME") has completed its purchase of the business operations and assets of Cedar Meats. The Revenue Recognition Agreement, under which there was a conditional agreement to onboard AustAgri into a DomaCom Sub-Fund ("Scheme"), had provisions for a termination fee of $8.5 million plus GST if the Scheme was not implemented within the 30 day deadline provided for in that agreement. The Scheme was not implemented within the 30 day deadline provided for in the Revenue Recognition Agreement. It was DomaCom's position that the termination fee was therefore payable under the Revenue Recognition Agreement and was a debt due and owing to DomaCom. It was on this basis that DomaCom issued an invoice and statutory demand to GME for $8.5 million plus GST. GME disputed that there was a debt owing by it under the Revenue Recognition Agreement and filed an application in the Supreme Court of Victoria to set aside the statutory demand. The application to set aside the statutory demand was filed on 20 January 2022. The first return of the application was listed in Court for 2 March 2022. However, prior this hearing, DomaCom and GME agreed to mediation that took place on 21 March 2022. On 24 March 2022 DomaCom entered into a Deed of Settlement with GME confirming that it will withdraw the statutory demand and the Supreme Court proceeding brought by GME will be dismissed by consent. Under the Deed of Settlement GME will pay DomaCom $2.5 million plus GST in installments to be completed by no later than December 2023 (which may be accelerated in certain circumstances). An initial payment to DomaCom of $500,000 plus GST was received on 31 March 2022.

No revenue has currently been recognised as at 31 December 2021 in relation to the termination fee.

Board Renewal

As part of a process of Board renewal and as a product of the stage of DomaCom's development, non-Executive Directors Mr David Archbold and Mr Peter Church OAM retired from the Board of DomaCom Limited on 24 August 2021.

COVID-19

DomaCom has not been significantly impacted operationally by COVID-19. As a cloud based business staff can work effectively from home. Our main target market is the financial planning industry which is generally well placed to interact using online services.

DIRECTORS' REPORT 31 DECEMBER 2021

A copy of the Auditor's Independence Declaration as required under s307C of the Corporations Act 2001 is included on page 4 of this financial report and forms part of this Directors' Report.

Signed in accordance with a resolution of the Board of Directors:

1 April 2022

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