Ann: Quarterly Activity Report and Appendix 4C, page-3

• 2025’s first quarter record revenue of USD $1.020M (A$1.60M)
• 64% (USD $399K) increase over Q1/24
• 113% (USD $540K) increase over Q4/24
• Second major order, valued at USD $4.28M (A$6.71M) from a leading European defence OEM . To reflect in Q2/25 and beyond.
• This order should not be confused with a separate and unrelated major order announced on 25/09/2024 of a new cellular communication product.
• Q1 showcases the Company’s expanding customer footprint— growing base of 70 customers.
• Ten new customers joined our ecosystem this quarter, fuelling momentum and market reach.
• Move into much larger revenue orders from single customers (from tens and hundreds of thousands to the millions) that will start to feature highly in the makeup of our Q2/2025 revenues and beyond.
• Proportion of revenue derived from the defence sector soared to 73% in contrast to 27% from the commercial sector.
• Increased its burn rate from Q1 2024 by USD $444K, due mainly to an increase in marketing and sales investments in the defence sector. In comparison with the previous quarter, the burn rate decreased by USD $353K or 36%. This recent increase reflected additional resources, particularly in sales personnel, exhibitions, and advertising.
• With strong payment terms secured on key projects, the Company has sufficient funding to deliver on all existing and future orders, and expects a sharp decrease in burn rate going forward.
• European-based defence OEM customer for deployment in a government drone program in Europe. Under this agreement, the customer has already transferred US$2 million out of the total amount as part of the agreement terms. Revenues from the above-mentioned supply agreement have commenced in Q2.
• The Company has not taken any steps and is not proposing to take any further steps to raise additional cash.