Ann: Quarterly Activities/Appendix 4C Cash Flow Report, page-2

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: Yes.

Subsequent to quarter end, the Company received funding commitments from entities
associated with Directors Paul Lewis and Julie King, to provide financial accommodation by
way of loan facilities. The loan facilities will collectively provide Hydrix with access to funding
of $1m on a drawdown basis up until at least 31 December 2024, increasing the available
funds to more than two quarters. Hydrix intends to use the facilities to support its working
capital requirements. The terms of the loan facilities (which are subject to execution of formal
documentation) are summarised in the Company's quarterly activities report for the quarter
ended 31 December 2023. Further, management continues to drive sales and manage costs
to improve operating profit and cash flows. The business also holds $5.1m in Venture
investments which may be sold in due course, and also has a track record of successful
equity and debt capital raisings.

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.

The Group secured additional new funding from the Directors as noted above,
anticipates future revenue growth from the significant increase in sales pipeline opportunities,
and continues to implement ongoing discretionary cost management initiatives - including by
seeking to restructure and reduce operating (e.g. occupancy) expenses.