Mobilicom : Q4 FY21 Activities Report & Appendix 4C

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Q4 FY21 Activities Report & Appendix 4C

Delivering against strategy, increasing revenue contribution from existing customer

base

Key Highlights

• Strong finish for the year with $1.4 million in customer receipts, a 214% increase on the previous corresponding period (pcp) and a 61% increase on the prior quarter driven by strong product demand from new and existing customers
• Secured first cybersecurity contract with Israel Ministry of Defense for an initial $270,000
• Over $550,000 in orders received during quarter across new and existing customers
• Awarded an additional $917,000 in R&D grant funding for existing consortium and international projects
• Well-fundedto execute growth strategy with a cash balance of $4.0 million

27 January 2022 - Mobilicom Limited (Mobilicom or the Company, ASX: MOB) is pleased to provide this activity update for the quarter ended 31 December 2021 (Q4 FY21), along with the Company's Appendix 4C cash flow report.

Operational Overview

Mobilicom had a productive quarter, fulfilling its backlog of confirmed orders, receiving thirteen new contracts from both new and existing customers valued at over $550,000 and securing its first ICE Cybersecurity sale from the Israel Ministry of Defense (IMOD). Over the quarter, key orders the Company received included the fifth order from Teledyne-Fliras part of the design-winand integration process into their new drone platform, another repeat order from Elbit as part of their systems deployment for their international customer, and further orders from AZUR Drones in France and Censys Technologies in the US. The Company continues to execute on its growth strategy, targeting long-termdesign win contracts and additional smart solution components sales to global Tier-1drone and robotics manufacturers.

Commenting on the Company's Q4 FY21 performance, Mobilicom CEO Oren Elkayam said, "We are rapidly commercialising our innovative ICE cybersecurity software, securing our first sale to a leading military and defence cybersecurity user, IMOD, and commencing real-world technical validation. Infield implementation is already underway with IMOD, and upon successful validation, we anticipate it will support new cybersecurity sales to other drone and robotics manufacturers. Our growing software and services offering provides us with a significant long-term growth opportunity to cross-sell to all users of our field-proven hardware solutions.

"Two new R&D grants reflect our expertise in developing cutting-edge technologies for the drone and robotics market. While Mobilicom remains focused on increasing sales of its existing offering, we continue to work on future products that address key customer concerns such as safety and wireless 5G connectivity. The results of these research projects will provide significant long-term competitive advantages.

"We continue to gain traction with our refreshed go-to-market strategy, offering customers end-to-end smart solutions that are field-proven and optimised for critical commercial and industrial applications.

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Our growing product offering is enabling us to increase the revenue contribution of existing customers through the sale of additional smart solution components, cybersecurity and software and services. Given the scalability of our cybersecurity software, we are well-positioned to increase our revenues in FY22 and beyond."

First cybersecurity contract

In November, Mobilicom received a $270,000 sale of its AI-based 360° cybersecurity software from the Israel Ministry of Defense (IMOD). This first sale to a global leader in cybersecurity for military and defence applications is an important technical and commercial validation.

Mobilicom will embed its Immunity, Cybersecurity and Encryption (ICE) cybersecurity software within its networking smart solutions being used in IMOD's tactical drones and robotics platforms. The multilayered software provides real-time autonomous protection against multiple cyber breaches and malicious attacks without requiring intervention by an operator. It protects the platform, safeguards communication channels, and encrypts the data that is transmitted and collected.

As part of the contract, the IMOD will conduct extensive in-field implementation of Mobilicom's cybersecurity software under a range of conditions. Following in-field validation, all future IMOD purchases of Mobilicom's networking and datalink smart hardware solutions will also include cybersecurity software.

Research and development programs

During the quarter, Mobilicom was awarded two research and development grants totalling $917,000 for existing projects with the Wireless Intelligent Networks (WIN) Consortium and Space Florida USA. Mobilicom will receive $582,000 net grant funding to develop wireless AI to enable and optimise the performance of 5G technology in unmanned platforms - the second phase of the WIN Consortium program. Mobilicom was awarded a further $335,000 net grant funding for the second year of the Space Florida R&D program in partnership with US drone company Censys Technologies. The two companies are developing an Autonomous Platforms Dual Datalink (APDL) communications system to improve drone safety and drone operations beyond visual-line-of-sight.

Financial

For the quarter, customer receipts were $1.4 million, a 214% increase on pcp, and 61% increase on the prior quarter. Overall in FY21 this has driven a 26% increase in customer receipts to $4.0 million as a result of strong growth in customer demand for Mobilicom's products and services. Additionally, the Company was awarded a further $917,000 in R&D grant funding expected to be received as the two projects progress, mostly over the course of FY22.

Net cash used in operations was $230,000, an 74% decline on the prior quarter, however overall operating expenditure remains broadly flat quarter on quarter. The overall improvement in operations reflect optimised operating procedures and a reduction in non-core activities. Additionally, business activities grew significantly compared to the prior corresponding period.

Mobilicom remains well-funded to execute on its growth strategy with a cash balance of $4.0 million as of 31 December 2021.

Corporate

Over the past few quarters as operating conditions have normalised management have focused on investing back into sales and marketing support with the recruitment of additional resources to support further growth initiatives. Additionally, the Company made the strategic decision to ensure all staff's

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salaries, excluding founders, were reinstated to pre-covid levels. The Company is now focused on maintaining a conservative but growth orientated focus on operating expenditure

Outlook

In FY22, Mobilicom remains focused on securing new Tier-1 customers, increasing revenue contribution from its existing customer base, and commercialising its world-first cybersecurity software offering. Operating within the fast-growing commercial and industrial drone and robotics market, Mobilicom is the only provider of end-to-end hardware and software solutions for drones, robotics, and autonomous platforms. The Company is in advanced negotiations with several potential customers and expects to secure new sales in the near future.

Investor Webinar

The Company will host a quarterly investor webinar to discuss its performance at 8:30am AEDT on Wednesday 2nd February 2022. The webinar will run for approximately 40 minutes and will provide attendees with the opportunity to ask questions following the presentation. Register to attendee at https://us02web.zoom.us/j/89163672487?pwd=a25pVHJEYXhyM1Vwd2hqbHE5cGIzZz09

Authorised for release by the Board of Mobilicom.

For more information on Mobilicom, please contact:

Tristan Everett

Media Relations

[phone] [e-mail]

Stephanie Ottens

Investor Relations [phone] [e-mail]

Oren Elkayam

Mobilicom Ltd [e-mail]

About Mobilicom

Mobilicom is an end-to-end provider of cybersecurity and smart solutions for drones, robotics & autonomous platforms. As a high-tech company it designs, develops and delivers smart solutions focused primarily on targeting global drone, robotics and autonomous system manufacturers.

The company holds patented technology & unique know-how for Mobile Mesh networking. It has a large, field proven portfolio of commercialised products used in a variety of applications.

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Mobilicom has grown a global customer base with sales to high profile customers including corporates, governments and military departments. Mobilicom's competitive advantages including outstanding security capabilities and performance in harsh environmental conditions.

Mobilicom's large solution portfolio has been deployed worldwide, seeing the Company derive revenue from hardware, software sales & licensing fees and professional support services for its solutions.

https://mobilicom-ltd.com.au

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Appendix 4C

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

Name of entity

Mobilicom Limited
ABN	Quarter ended ("current quarter")
26 617 155 978	31 December 2021

Consolidated statement of cash flows	Current quarter	Year to date
			$A'000	(12 months)
				$A'000
1.	Cash flows from operating activities
1.1	Receipts from customers	1,358	3,977
1.2	Payments for
	(a)	research and development	(250)	(830)
	(b) product manufacturing and operating	(215)	(865)
		costs
	(c)	advertising and marketing	(176)	(547)
	(d)	leased assets	(85)	(341)
	(e)	staff costs	(832)	(3,033)
	(f) administration and corporate costs	(298)*	(955)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	1	1
1.5	Interest and other costs of finance paid	(1)	(6)
1.6	Income taxes paid	-	-
1.7	Government grants and tax incentives	268	787
1.8	Other (provide details if material)	-	31
1.9	Net cash from / (used in) operating	(230)	(1,781)
	activities

• The net cash from operating activities for current quarter includes one-time payment related with D&O insurance

2. Cash flows from investing activities

2.1 Payments to acquire or for:

(a)	entities	-	-
(b)	businesses	-	-
(c) property, plant and equipment	(4)	(13)
(d)	investments	-	-