Announcement PDF Rule 4.7B Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B Name of entity SPECTUR LIMITED ABN Quarter ended (“current quarter”) 79140151579 Consolidated statement of cash flows 1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for 30 SEPTEMBER 2023 Current quarter $A’000 Year to date (3 months) $A’000 2,258 2,258 (a) research and development Note a (50) (50) (b) product manufacturing and operating costs Note a (904) (904) (c) advertising and marketing (85) (85) - - (1,384) (1,384) (443) (443) (d) leased assets (e) staff costs (f) administration and corporate costs 1.3 Dividends received (see note 3) - - 1.4 Interest received - - 1.5 Interest and other costs of finance paid (39) (39) 1.6 GST paid (73) (73) 1.7 Government grants and tax incentives (R&D) - - 1.8 Other (Customer Deposits) - - 1.9 Net cash used in operating activities (720) (720) Note a: Only includes direct costs paid to third parties. All staff costs are shown as “staff costs”. 2. Cash flows from investing activities 2.1 Payments to acquire or for: (a) entities – net of cash acquired - - (b) businesses - - (21) (21) (d) investments - - (e) intellectual property - - (c) property, plant and equipment ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms. Page 1 Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B Consolidated statement of cash flows (f) 2.2 other non-current assets Current quarter $A’000 Year to date (3 months) $A’000 - - (a) entities - - (b) businesses - - (c) property, plant and equipment - - (d) investments - - (e) intellectual property - - (f) - - Proceeds from disposal of: 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) - - 2.6 Net cash used in investing activities (21) (21) 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 - - 3.4 Transaction costs related to issues of equity securities or convertible debt securities - - 3.5 Proceeds from borrowings 170 170 3.6 Repayment of borrowings (42) (42) 3.7 Transaction costs related to loans and borrowings - - 3.8 Dividends paid - - 3.9 Repayment of Lease liabilities (43) (43) 3.10 Net cash from financing activities 85 85 4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of period 1,522 1,522 4.2 Net cash from / (used in) operating activities (item 1.9 above) (720) (720) 4.3 Net cash from / (used in) investing activities (item 2.6 above) (21) (21) ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms. Page 2 Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B Consolidated statement of cash flows Current quarter $A’000 Year to date (3 months) $A’000 4.4 Net cash (used in) / from financing activities (item 3.10 above) 85 85 4.5 Effect of movement in exchange rates on cash held - - 4.6 Cash and cash equivalents at end of period 866 866 5. Reconciliation of cash and cash equivalents Current quarter $A’000 Previous quarter $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 822 1,478 5.2 Call deposits 44 44 5.3 Bank overdrafts - 5.4 Other (provide details) - 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 6. Payments to related parties of the entity and their associates 6.1 Aggregate amount of payments to related parties and their associates included in item 1 110 6.2 Aggregate amount of payments to related parties and their associates included in item 2 - 866 1,522 Current quarter $A'000 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) + See chapter 19 of the ASX Listing Rules for defined terms. Page 3 Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B 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. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 650 650 - - 7.1 Loan facilities 7.2 Credit standby arrangements 7.3 Other (chattel mortgage) 225 225 7.4 Total financing facilities 875 875 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. - We have the following financing arrangements in place: • VW Finance at an interest rate of 3.4% and secured by motor vehicles. • KIA Finance (New Zealand) at an interest rate of 10.95% secured by Motor Vehicle. • IQumulate Unsecured finance at an interest rate of 9.18%. This is repayable by 30 April 2024. • EGP Capital – Interest rate of 10% till 31 December 2023 and then increasing to 13% from 1 January 2024 till repayment. The facility of $650k is in place to 31 December 2024. Spectur Ltd have also issued 2.25 million unquoted options to EGP Capital exercisable at $0.12 on or before 31 December 2023. 8. Estimated cash available for future operating activities $A’000 8.1 Net cash from / (used in) operating activities (item 1.9) (720) 8.2 Cash and cash equivalents at quarter end (item 4.6) 866 8.3 Unused finance facilities available at quarter end (item 7.5) 8.4 Total available funding (item 8.2 + item 8.3) 866 8.5 Estimated quarters of funding available (item 8.4 divided by item 8.1) 1.2 - 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. ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms. Page 4 Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B 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: No. Receipts from customers will be higher due to receipts (received on 7 October 2023) for advance payment from Southern Cross Protection (SXP) for multi-year SpecturConnect+ subscriptions and services to the value of $614k (incl GST). Spectur normally receives a R&D tax offset refund in October / November, and this is estimated to be more than $400k. Cash outflows for t Q1 are usually higher due to one-off expenses as well as annual renewals (insurance, ASX fees, audit fees etc.). Spectur remains committed to constraining overheads and improving gross margins which will improve operating cash consumption. $75k cash was raised via a Placement announced 9 October 2023 and settled on 24 October 2023. • • • • • 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: No – refer 8.6.1 above. 8.6.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis? Answer: Yes • • • Receipts from customers will be higher due to receipt (7 October 2023) of advance payment from Southern Cross Protection (SXP) for $614k (incl GST). R&D tax offset refund to be received in October / November and it is estimated to be more than $400k. Constrained overhead and improved margin initiatives going forward Note: where item 8.5 is less than 2 quarters, all of questions 8.6.1, 8.6.2 and 8.6.3 above must be answered. 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. Date: ............24 October 2023....................................................................... Authorised by: .............. The Board of Directors...................................................... Notes 1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so. 2. If this quarterly cash flow 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 cash flow report has been ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms. Page 5 Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B 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. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [name of board committee – eg Audit and Risk Committee]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”. 5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively. ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms. Page 6