SenSen : Quarterly Activities and Cashflow Report June 2022

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21 July 2022

SenSen Announces Record Quarterly Cash Receipts

Melbourne, Australia - Leading sensor AI software and solution provider SenSen Networks Limited (ASX:SNS, "SenSen" or "the Company") provides an update on its activities for the quarter ended 30 June 2022 (Q4 FY22).

Highlights for Q4 FY22

• Record Q4 customer cash receipts of A$3.7M, a 128% increase over the PCP in Q4 FY21.
• Cash and cash equivalents increased to ~A$5.8M (versus A$5.7M at 31 March 2022) and unused finance facilities available of A$1.8M as at 30 June 2022.
• SenSen won multiple contracts from new and existing customers over the last quarter for a combined minimum value of ~A$3.8M in upfront & SaaS recurring revenues from FY23.
• Forward looking annual recurring revenues closing in on ~A$8M (MRR x 12).
• Cost reduction initiatives of ~A$2.5M expected to benefit FY23 as the Company drives towards cash flow positivity.

Financial update

Cash Receipts from Customers

$1,000.00 $500.00

$-

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

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Quarterly Report

Activities Report for the Quarter ended 30 June 2022

As noted in Item 6 of the Company's Appendix 4C Cashflow Statement, net payments made to related parties and their associates totalled A$754K for the quarter. The payments comprise intercompany transfer of funds to/from SenSen VBI Pvt Ltd (India) and SenSen Networks Canada Ltd (Canada) to fund working capital for international growth during the quarter ended 30 June 2022.

SenSen also reported Net Cash used in Operating Activities of A$1.3M during the quarter as it continues to invest in sales and marketing initiatives and R&D to drive top-line growth.

During the period SenSen drew down A$1.5M from a short-term working capital loan facility with Rocking Horse Nominees Pty Ltd. This loan is secured over SenSen's expected Research and Development refund for FY22 and will be paid back in full when the R&D grant is received in October 2022.

SenSen finished the quarter with A$5.8M of cash and cash equivalents, and unused finance facilities of A$1.8M, versus cash and cash equivalents of A$5.7M and unused finance facilities of A$1.8M at 31 March 2022.

Cost Controls

As SenSen drives towards cash flow positivity, management continues to review SenSen's cost base to ensure the business is operating at maximum efficiency. So far, this review has led to actions taken to decrease the operational cost base by ~A$2.5M in FY23 including reductions in staff costs, professional services, IT, travel and administrative costs.

These cost reductions have been carefully implemented to avoid any impact on the Company's ability to continue aggressively growing its revenue. The cost base is now largely fixed and not expected to materially increase in the near term as the Company continues to expand revenue.

Operational Update

SenSen has been successful in continuing its land and expand strategy, winning multiple contracts in Q4 FY22 with new and existing global customers covering all business verticals including Smart Cities, Casinos, Fuel Retail and Surveillance with total new minimum contract value amounting to ~A$3.8M in both upfront and Software as a Service (SaaS) recurring revenues from FY23:

Smart Cities

• Australia - City of Adelaide - SenSen won a new 5-year contract to provide up to 10 mobile parking enforcement (SenFORCE) units along with associated software and services.
• North America - Concord Parking - SenSCAN and Gemineye solutions for parking
• Singapore - Port of Singapore projects for Security and Safety using AI.
• Melbourne, Victoria - VicRoads for Intersection monitoring and Tram stop safety.

Casinos

• Solaire - Strengthening an existing 3-year relationship with Solaire, SenSen won a new contract to roll out table game analytics solution SenGAME to an additional 135

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Quarterly Report

Activities Report for the Quarter ended 30 June 2022

tables, bringing the total number of SenGAME tables at Solaire to 200 and adding both upfront and recurring monthly revenues.

Fuel Retail and Surveillance

• Vibe Petroleum - 3-year contract with initial 26 sites for fuel theft reduction solution.

Commenting on the Company's June quarter results, SenSen CEO Dr Subhash Challa said, "In the current challenging economic conditions, delivering growth while reducing costs is a pressing priority and I am pleased to share the excellent progress made by our team in this regard. Delivering record sales cash inflows for Q4 FY2022 of A$3.7M with forward looking ARR (MRR x12) closing in on ~A$8M shows the resilience of our company, our technology platform, products and the team. It's a great foundation to help us continue to deliver positive results into the future."

This release is approved by the Board of SenSen.

About SenSen Networks Limited

SenSen Networks Limited (ASX:SNS; OTCQB:SNNSF) is a leading Sensor AI Data enterprise working with people, places and data to solve problems once thought technically impossible. The company's patented network approach enables SenSen to offer customised, real-time and batch processing of data alongside SaaS solutions.

The Company's technology fuses complex video and sensor datasets at high speeds across multiple networks to assess and inform strategic actions to its customers across its enterprise verticals: Smart Cities, Casinos, Retail, Smart Surveillance and Emerging Tech. SenSen has clients on four continents and can be found in Australia, New Zealand, Singapore, USA, Canada, India and UAE.

Disclaimer - Forward-looking statements

This release may contain forward-looking statements. These statements are based upon management's current expectations, estimates, projections and beliefs in regards to future events in respect to SenSen's business and the industry in which it operates. These forward-looking statements are provided as a general guide and should not be relied upon as an indication or guarantee of future performance. The bases for these statements are subjected to risk and uncertainties that might be out of control of SenSen Networks Limited and may cause actual results to differ from the release. SenSen Networks Limited takes no responsibility to make changes to these statements to reflect change of events or circumstances after the release.

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Appendix 4C

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

Appendix 4C

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

Name of entity

SENSEN NETWORKS LIMITED

1. Cash flows from operating activities

1.2 Payments for

1. research and development

2. Cash flows from investing activities

2.1 Payments to acquire or for:

1. investments
2. intellectual property
3. other non-current assets

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Appendix 4C

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

1. Proceeds from disposal of:
2. 1. entities
   2. businesses
   3. property, plant and equipment
   4. investments
   5. intellectual property
   6. other non-current assets
3. Cash flows from loans to other entities
4. Dividends received (see note 3)
5. Other (provide details if material)

3. Cash flows from financing activities

3.1 Proceeds from issues of equity securities

1. Proceeds from issue of convertible debt securities
2. Proceeds from exercise of options

1. Transaction costs related to loans and borrowings
2. Dividends paid

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

4.1 Cash and cash equivalents at beginning of