Ann: Appendix 4C - quarterly, page-58

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Supplementary Information to Appendix 4C - Section 8 1 February 2021

I refer to the Appendix 4C and Activity Statement for the quarter ended 31 December 2020 lodged on 29 January 2021 and the request from ASX for additional information.

The cash flow used in operating activities during the quarter of $2,769k was significantly higher than in previous quarters due to the fact that we were finalising the development phase of the project with our major vendors in Israel and European countries. These costs included development of MEMS, ASIC, measurement systems and demonstration electronics, wafer dicing and chip packaging costs paid to third party vendors. This resulted in accelerated and non-recurring payments for development and testing during the quarter of $2,487k as we work towards the completion of the development phase with scheduled demonstration to be completed by the end of February 2021.

The payments for the development phase of the project are projected to revert to less than $1,500k per quarter for the next two quarters. The payments for staff costs ($139k) and administration and corporate costs ($171k) were in line with previous quarters and are expected to be of a similar amount for the next two quarters.

On the basis of the above reduced development payments, the current cash level is sufficient to fund the next two quarters.

This announcement has been authorised for release to ASX by Fred Bart, Chairman. Supplementary Information to Appendix 4C - Section 8