Ann: Half Yearly Report and Accounts, page-3

Financial

Syntonic was pleased to report record revenue generation from its ordinary activities of $2,831,120 for the

first half of FY19. This represents a 254% increase compared to the previous corresponding period (H1 FY18

$798,923).

Services and product revenues were received from the Company’s customers including Tata Communications,

Mobifone, and the Company’s newly formed Syntonic Brazil subsidiary. The Company expects to continue

receiving minimal income from Verizon throughout the early part of H2 FY19.

The Company’s cash receipts from customers & other debtors also grew strongly during the period, with

Syntonic reporting $1,714,203 for the half year. This represents a 126% increase on the previous half year

period (H1 FY18 $760,034).

Total payments outside of financing activities for the half year came to $5,309,032 (H1 FY18 $3,218,346),

including $1,405,087 of one-time acquisition and investment costs incurred for the acquisition of the mobile

commerce business unit assets from Zenvia. At 31 December 2018, the Group had cash reserves of $2,417,685

(H1 FY18: $7,183,124) and no outstanding debt.

As advised in January 2019, Syntonic Executive Directors, Dr Gary Greenbaum, CEO and Mr Rahul Agarwal,

CTO have voluntarily undertaken to forego any bonus relating to calendar year 2018 to demonstrate their

commitment to prudent cost management.

As at 31 December 2018, the Company had net assets of $2,277,114 (FY18: $4,502,168).