Ann: Quarterly Activities Report and Appendix 4C, page-2

30 April 2020 – Perth, Australia Nuheara Limited (ASX: NUH) (Company or Nuheara), is pleased to provide its Quarterly Report for the quarter ended 31 March 2020.
The quarter was dominated by the launch and pre-sale campaign for Nuheara’s next generation product, IQbuds2 MAX.
Cash receipts for the quarter, including IQbuds2MAX pre-sales, which are recognised as revenue when shipped, were $1.227M, approximately 35% higher than the December 2019 quarter ($910K) and 171% higher than the September 2019 quarter ($452K).
Improved sales results have been achieved almost exclusively via the Company’s Direct-To-Consumer (DTC) online sales platform, further validating the sales model’s ability to reach and transact with global customers. The DTC model is proving to be a viable alternative as traditional hearing clinics and retailers shutter around the world with the advent of the COVID-19 crisis. Nuheara also continues to pursue other traditional sales channels in accordance with its business strategy, including partnerships and distributor relationships in the healthcare sector to extend brand awareness and drive further sales.
Importantly, the Company has maintained a Return on Advertising Spend (ROAS) of 2.5x for the quarter despite the COVID-19 business disruptions, demonstrating the scalability and suitability of Nuheara’s DTC platform