Ann: Quarterly Activities/Appendix 4C Cash Flow Report, page-19

DYOR

The Company notes the Appendix 4C Section 8.5 shows a cash runway of 1.09 quarters (based on historic
cash flows, September quarter, Q1 FY2023) and notes the following key factors affecting cash flows from
operating activities in the September quarter:
1. In its Investor Presentation dated 13 September 2022 (slide 17), the former CEO indicated that the
Company anticipated ‘cash burn’ to be materially lower in Q1 FY2023 than in Q4 FY2022. In fact the
‘Net cash used in operating activities’ was not materially lower, this is discussed below.

2. Pleasingly, the $4.0m per annum of cost savings and P&L synergies generated by ‘Project One’ and
noted on slide 16 of the same Investor Presentation have been realised in the quarter.

3. However, the timing of various working capital movements in the June and September quarters,
which were not taken into account as a factor influencing the statement made regarding ’cash
burn’, has meant that ‘Net cash used in operating activities’ has not achieved the anticipated level
in the September quarter.

4. The Company has executed changes that have reduced net operating cash outflows, revenue
growth through Q1 has been strong and is expected to grow further in Q2. The Company also expects
R&D tax refunds to release between $0.8m and $1.0m in cash in Q2.