IXUP : Appendix 4C & Quarterly Activities Report

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28 January 2022

Appendix 4C & Quarterly Activities Report

IXUP enters major new global markets and completes capital raising in

December quarter

Q2 Highlights

• Entered US online gaming and sports wagering markets in partnership with leading US wagering technology organisation
• Entered New Zealand market via partnership with Beyonde Ventures, a subsidiary of Australian loyalty consultancy Ellipsis & Company
• Signed data collaboration agreement with leading global customer data management and consulting company Acxiom
• Completed successful capital raise to fund ongoing commercialisation efforts for IXUP's world- leading data collaboration technologies
• Appointed CFO to assist with ongoing growth initiatives, as well as updating the CEO remuneration package

IXUP Limited (ASX: IXU) ("IXUP" or the "Company"), an innovative technology company focused on collaborative and secure data analytics, today lodged its Appendix 4C Report and provided a review of the Company's progress for the second quarter ended 31 December 2021 (Q2 FY22).

Entry into US online gaming and sports wagering markets

On 5 October 2021, IXUP announced that it had entered into a Pilot Collaboration Agreement with leading US wagering technology organisation GeoComply Solutions Inc. ('GeoComply) and Conscious Gaming.

Under the agreement, the Company's technology will be incorporated within GeoComply's market- leading PlayPause multi-stateself-exclusion product, providing additional functionality, encryption- based data security and product scalability.

The collaboration is an ideal opportunity to showcase the application of IXUP's technology to the highly- regulated US sports data and wagering markets.

Entry into New Zealand market

On 5 November 2021, the Company announced it had signed a 2-year rolling, Partner agreement with Beyonde Ventures Pty Ltd (Beyonde). Beyonde is a subsidiary of Ellipsis & Company, an Australian- owned loyalty consultancy, with a high-profile list of clients with well-known loyalty programs.

Beyonde will establish a New Zealand instance of the IXUP Platform to meet any client data sovereignty requirements; will take on the role as IXUP's Partner and Master Reseller for the New Zealand market; will provide a Software-as-a-Service (SaaS) and Platform-as-a-Service (PaaS) offering of the IXUP secure Data Engine.

New partnership with Acxiom to explore commercialisation opportunities

On 18 November 2021, IXUP announced that it had signed a Data Collaboration Agreement with leading global customer data management and consulting company Acxiom.

The agreement will see IXUP and Acxiom explore potential opportunities through the combination of the Company's leading secure data collaboration technology and Acxiom's rich global geo-demographic data sets.

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The initiative is significant as it will showcase IXUP's ability to offer its clients data enrichment and collaboration opportunities that generate deeper, more valuable insights whilst at all times preserving the security of the underlying data.

Corporate

During the quarter, the Company announced that it had successfully raised $10m (before costs) to fund ongoing commercialisation efforts for its world-leading data collaboration technologies, as well as related working capital.

The raising, arranged by Cygnet Capital, was significantly oversubscribed and supported by institutional and sophisticated investors, including strong support from existing shareholders.

The Company also announced the appointment of Matthew Johnson as CFO. Mr Johnson is an experienced Chartered Accountant and Company Secretary with experience in private, listed and international organisations, and extensive technology industry experience.

Following the appointment of Mr Marcus Gracey as CEO and Managing Director on 11 November 2020, the board has reviewed Mr Gracey's remuneration package and agreed to increase his salary from $150,000 to $320,000 per annum (exclusive of Superannuation). This is in line with comparable roles and is aligned with shareholder interests and a reflection of his performance over the past 12 months as well as an incentive for the coming 12 months.

IXUP held its Annual General Meeting on 24 November 2021. All resolutions were passed and decided by way of poll.

Post the quarter, the Company further strengthened its Board with the appointment of Ian Penrose as a Non-Executive Director of the Company effective 24 January 2022.

Mr Penrose is a highly experienced board member and global executive with a successful career in the international gaming, technology, sports and leisure industries. His current roles include Chairman of DataPOWA, senior independent director of Playtech plc (LON: PTEC) and NED of Weatherbys Limited.

Q2 Financial Update

Net cash outflows from operations were $3.06 million for the quarter. Receipts from customers for the quarter totalled $37,029 comprising revenue from both of our recent acquisitions, noting US revenue charged in Q2 has now been received in Q3, due to Vendor set-up requirements causing a delay in collection. The material expense items of Staff Costs and Administration & Corporate Costs, being $1.66 million and $0.99 million respectively.

Net cash outflows from investing activities were $0.01 million for the quarter, all being related to PPE.

Net cash inflows from financing activities were $9.49 million for the quarter, with $10.4 million being proceeds from the capital raise and exercise of options.

Directors, being related parties of the Company, were paid remuneration in the amount of $164,938 during the September quarter. No other related party payments were made.

The Board and Management remains focussed on disciplined cash management as IXUP seeks to capitalise on opportunities and deliver growth through its recent strategic acquisitions.

IXUP CEO Marcus Gracey said: "The December quarter was another important one of IXUP, which has emerged from a period of transformation with a clear strategy to monetise and grow the use of our world-class technology platform. We have a number of commercialisation opportunities in the pipeline and we are confident that we will be able to convert some of these into revenue-generating contracts in the quarters ahead. In the medium to long-term, we also remain on the lookout for value-accretive

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acquisition opportunities. Following the capital raising, we are well-funded to continue executing our strategic objectives. We look forward to further updating shareholders on our progress and delivering value to them in the near term."

Company Secretary Update

The Company previously has been operating with Joint Company Secretaries, being Mr David Franks and Ms Victoria-Jane Otavski, supplied to IXUP under an agreement with the Automic Group. Ms Otavski is stepping down as Company Secretary, effective 28 January 2022, to pursue new opportunities. The Board wishes to thank Ms Otavski for her services to the Company.

Mr David Franks will continue in his role, being the sole Company Secretary. For the purpose of ASX Listing Rule 12.6, the person responsible for communications between the Company and ASX will remain unchanged, with Mr Franks continuing in this capacity.

This announcement has been approved for release by the Board of IXUP.

	-ENDS-
Enquiries:
IXUP	Investor relations
Marcus Gracey	Julia Maguire
CEO - IXUP Limited	Executive Director - The Capital Network
[e-mail]	[e-mail]
	[phone]

About IXUP

IXUP Limited (ASX: IXU) (pronounced 'eyes up') is a pioneering technology company with a world class suite of software products that facilitate the secure sharing and analysis of sensitive information using advanced security technology. The Company's Secure Data Collaboration Suite of products represent is the missing 'key' to organisations 'unlocking' their information assets previously unable to be shared or commercialised due to concerns around privacy, cyber security, and compliance considerations. These data collaboration products are being commercialised at a crucial junction when the need to share and drive revenue from sensitive data and dormant data assets is becoming more important yet more difficult to achieve.

To learn more, please visit:www.ixup.com.IXUP's registered address is Level 3, 223 Liverpool Street, Darlinghurst, Sydney, NSW 2010.

Rule 4.7B

Appendix 4C

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Quarterly cash flow report for entities subject to Listing Rule 4.7B

Name of entity

IXUP Ltd
ABN	Quarter ended ("current quarter")
85 612 182 368	Dec-21

Consolidated statement of cash flows	Current quarter	Year to date (6
			$A	months)
				$A
1.	Cash flows from operating activities
1.1	Receipts from customers	36,929	270,263
1.2	Payments for
	(a)	research and development	(199,909)	(319,336)
	(b)	product manufacturing and operating	(183,231)	(219,051)
		costs
	(c)	advertising and marketing	(17,683)	(28,191)
	(d)	leased assets	(32,791)	(65,810)
	(e)	staff costs	(1,660,224)	(2,760,934)
	(f) administration and corporate costs	(997,986)	(2,735,776)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	50	253
1.5	Interest and other costs of finance paid	(304)	(931)
1.6	Income taxes paid	-	-
1.7	Government grants and tax incentives	-	-
1.8	Other	-	-
1.9	Net cash from / (used in) operating	(3,055,149)	(5,859,513)
	activities
2.	Cash flows from investing activities
2.1	Payments to acquire or for:
	(a)	entities
	(b)	businesses	-	(3,250,000)
	(c) property, plant and equipment	(12,677)	(16,338)
	(d) investments (Term Deposits with	-	(100,000)
		maturity of 3 months or greater)
	(e)	intellectual property	-	-

ASX Listing Rules Appendix 4C (17/07/20)	Page 1
+ See chapter 19 of the ASX Listing Rules for defined terms.

Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

For personal use only

Consolidated statement of cash flows	Current quarter	Year to date (6
			$A	months)
				$A
	(f)	other non-current assets	-	-
2.2	Proceeds from disposal of:
	(a)	entities	-	-
	(b)	businesses	-	-
	(c)	property, plant and equipment	-	-
	(d)	investments (Term Deposits with	-	-
		maturity of 3 months or greater
		realised during quarter)
	(e)	intellectual property	-	-
	(f)	other non-current assets	-	-
2.3	Cash flows from loans to other entities	-	-
2.4	Dividends received (see note 3)	-	-
2.5	Other ($300k GST Refund on payment for the	-	327,208
	acquisition of Data Republic technology assets
	(purchased in June 2021 quarter) and $27k cash
	balance from purchase of DataPOWA Limited)
2.6	Net cash from / (used in) investing	(12,677)	(3,039,130)
	activities

3. Cash flows from financing activities

3.1 Proceeds from issues of equity securities

	(excluding convertible debt securities)	10,000,000	10,000,000
3.2	Proceeds from issue of convertible debt	-	-
	securities
3.3	Proceeds from exercise of options	397,224	4,837,929
3.4	Transaction costs related to issues of	(907,001)	(933,599)
	equity securities or convertible debt
	securities
3.5	Proceeds from borrowings	-	-
3.6	Repayment of borrowings	(2,676)	(4,481)
3.7	Transaction costs related to loans and	-	-
	borrowings
3.8	Dividends paid	-	-
3.9	Other (provide details if material)	-	70,616
3.10	Net cash from / (used in) financing	9,487,547	13,970,465
	activities

ASX Listing Rules Appendix 4C (17/07/20)	Page 2
+ See chapter 19 of the ASX Listing Rules for defined terms.