For personal use only

4 February 2022

Company Announcements Office

Australian Securities Exchange

Revision to Appendix 4C - December 2021

Netlinkz Limited (ASX: NET) (Netlinkz or Company) provides the following additional information to the Appendix 4C (Listing Rule 4.7C.1) for the December 2021 quarter lodged on 27 January 2022. The revised 4C as attached includes a reclassification of costs from line 2.5 (other) to line 1.2 (a) (research & development) in the amount of $300,000.

ANALYSIS OF CASH FLOWS BY QUARTER (A$000's)

QTR 1

QTR 2

2022 H1

Receipts from customers

Notes

4,787

5,458

10,245

Research and development

1

(719)

(453)

(1,172)

Product manufacturing & operating

2

(2,478)

(4,135)

(6,613)

Advertising and marketing

(37)

(8)

(45)

Leased assets

3

(13)

(18)

(31)

Staff costs

(1,665)

(1,086)

(2,751)

Administration and corporate costs

4

(1,926)

(1,522)

(3,448)

Interest received

6

7

13

Interest paid

(94)

(91)

(185)

Income taxes paid

(46)

(99)

(145)

Other

(19)

(10)

(29)

(2,204)

(1,957)

(4,161)

Product manufacturing & operating

(2,478)

(4,135)

(6,613)

as a % of receipts from customers

-51.8%

-75.8%

-64.5%

  1. Research and development continued with the development of VSN2.2. Outflows for QTR 2 were marginally lower than QTR 1 which included payments for the previous period.
  2. Product manufacturing and operating costs/cost of sales. As outlined in the appendix 4C commentary, on an accounting (AASB15) revenue recognition basis gross margin is now 24% (cost of sales 76%). Cash outflows on product manufacturing costs will vary between quarters due to timing of payments.
  3. Staff costs were lower in QTR 2 due to a reduction in head count and a 50% reduction in the cash component of director's fees as outlined in the Appendix 4C commentary.
  4. Administration and corporate costs declined in QTR 2 attributable to a focus on reducing costs across the board and in particular consultants fees.

Authorised for release by the Board of Netlinkz.

Guy Robertson Company Secretary Netlinkz Limited grobertson@netlinkz.com

NETLINKZ LIMITED | ACN: 141 509 426 | ASX: NET | www.netlinkz.com

65 Stanley Street, Darlinghurst NSW 2010, Australia

For personal use only

Rule 4.7B

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Name of entity

NETLINKZ LIMITED

ABN

Quarter ended ("current quarter")

55 141 509 426

31 December 2021

Consolidated statement of cash flows

Current quarter

Year to date (6

$A'000

months)

$A'000

1.

Cash flows from operating activities

1.1

Receipts from customers

5,458

10,245

1.2

Payments for

(a)

research and development

(453)

(1,172)

(b) product manufacturing and operating

(4135)

(6,613)

costs

(c)

advertising and marketing

(8)

(45)

(d)

leased assets

(18)

(31)

(e)

staff costs

(1,086)

(2,751)

(f) administration and corporate costs

(1,522)

(3,448)

1.3

Dividends received (see note 3)

-

-

1.4

Interest received

7

13

1.5

Interest and other costs of finance paid

(91)

(185)

1.6

Income taxes paid

(99)

(145)

1.7

Government grants and tax incentives

-

-

1.8

Other (provide details if material)

(10)

(29)

1.9

Net cash from / (used in) operating

(1,957)

(4,161)

activities

2.

Cash flows from investing activities

2.1

Payments to acquire or for:

(a)

entities

-

-

(b)

businesses

-

-

(c) property, plant and equipment

-

-

(d)

investments

-

-

(e)

intellectual property

(6)

(6)

(f)

other non-current assets

-

-

ASX Listing Rules Appendix 4C (17/07/20)

Page 1

+ See chapter 19 of the ASX Listing Rules for defined terms.

For personal use only

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows

Current quarter

Year to date (6

$A'000

months)

$A'000

2.2

Proceeds from disposal of:

(a)

entities

-

-

(b)

businesses

-

-

(c) property, plant and equipment

-

-

(d)

investments

-

-

(e)

intellectual property

-

-

(f)

other non-current assets

-

-

2.3

Cash flows from loans to other entities

-

-

2.4

Dividends received (see note 3)

-

-

2.5

Other (provide details if material)

(78)

(143)

2.6

Net cash from / (used in) investing

(84)

(149)

activities

3.

Cash flows from financing activities

3.1

Proceeds from issues of equity securities

-

-

(excluding convertible debt securities)

3.2

Proceeds from issue of convertible debt

-

-

securities

3.3

Proceeds from exercise of options

300

820

3.4

Transaction costs related to issues of

-

-

equity securities or convertible debt

securities

3.5

Proceeds from borrowings

(20)

(20)

3.6

Repayment of borrowings

-

-

3.7

Transaction costs related to loans and

-

-

borrowings

3.8

Dividends paid

-

-

3.9

Other (provide details if material)

(16)

(62)

3.10

Net cash from / (used in) financing

264

738

activities

4. Net increase / (decrease) in cash and cash equivalents for the period

4.1

Cash and cash equivalents at beginning of

9,137

10,836

period

4.2

Net cash from / (used in) operating

(1,957)

(4,161)

activities (item 1.9 above)

4.3

Net cash from / (used in) investing activities

(84)

(149)

(item 2.6 above)

ASX Listing Rules Appendix 4C (17/07/20)

Page 2

+ See chapter 19 of the ASX Listing Rules for defined terms.

For personal use only

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows

Current quarter

Year to date (6

$A'000

months)

$A'000

4.4

Net cash from / (used in) financing activities

264

738

(item 3.10 above)

4.5

Effect of movement in exchange rates on

13

109

cash held

4.6

Cash and cash equivalents at end of

7,373

7,373

period

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

7,373

9,137

5.2

Call deposits

-

-

5.3

Bank overdrafts

-

-

5.4

Other (provide details)

-

-

5.5

Cash and cash equivalents at end of

7,373

9,137

quarter (should equal item 4.6 above)

6.

Payments to related parties of the entity and their

Current quarter

associates

$A'000

6.1

Aggregate amount of payments to related parties and their

169

associates included in item 1

6.2

Aggregate amount of payments to related parties and their

-

associates included in item 2

Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.

ASX Listing Rules Appendix 4C (17/07/20)

Page 3

+ See chapter 19 of the ASX Listing Rules for defined terms.

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

only

7. Financing facilities

Note: the term "facility' includes all forms of financing arrangements available to the entity.

Add notes as necessary for an understanding of the sources of finance available to the entity.

7.1 Loan facilities

7.2 Credit standby arrangements 7.3 Other (please specify)

7.4 Total financing facilities

Total facility

Amount drawn at

amount at quarter

quarter end

end

$A'000

$A'000

-

-

-

-

1,130

1,130

1,130

1,130

use

7.5

Unused financing facilities available at quarter end

-

7.6 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.

In respect of 7.3 above, the facilities are comprised of:

  1. $1,130,000 in unsecured short term loans with an interest rate of 20% per annum, where the lenders are as follows:
    1. Anathema Pty Ltd in respect of $180,000, with a maturity date of 14 June 2022;
    2. Mrs Joy Elaine Hordern in respect of $400,000 with a maturity date of 14 June 2022;
    3. Mr Anthony Phillip Hordern in respect of $500,000 with a maturity date of 15 June 2022;
    4. Mrs Rong Xie in respect of $50,000 with a maturity date of 15 June 2022.

personal

8. Estimated cash available for future operating activities

8.1 Net cash from / (used in) operating activities (item 1.9)

8.2 Cash and cash equivalents at quarter end (item 4.6)

8.3 Unused finance facilities available at quarter end (item 7.5) 8.4 Total available funding (item 8.2 + item 8.3)

8.5 Estimated quarters of funding available (item 8.4 divided by item 8.1)

$A'000

(1,957)

7,373

-

7,373

4.5

For

Note: if the entity has reported positive net operating cash flows in item 1.9, answer item 8.5 as "N/A". Otherwise, a figure for the estimated quarters of funding available must be included in item 8.5.

8.6 If item 8.5 is less than 2 quarters, please provide answers to the following questions:

8.6.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?

Answer: N/A

8.6.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?

Answer: N/A

ASX Listing Rules Appendix 4C (17/07/20)

Page 4

+ See chapter 19 of the ASX Listing Rules for defined terms.

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NetLinkz Ltd. published this content on 04 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 February 2022 07:25:03 UTC.