Wooboard Technologies : Quarterly Activities/Appendix 4C Cash Flow Report - Updated

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ASX Announcement

4 February 2022

December 2021 Quarterly Activities Report and Appendix 4C - Updated

Wooboard Technologies Limited (ASX:WOO) (Company) refers to its Quarterly Activities Report and Appendix 4C lodged with ASX on 31 January 2022. The Company advises that it has updated the Quarterly Activities Report (see heading "ASX Additional Information") and Appendix 4C (see item 6.1 of the Appendix 4C) to include additional information regarding the payments to related parties in the quarter.

For completeness, attached to this announcement is the updated Quarterly Activities Report together with the updated Appendix 4C.

- ENDS -

For further information, please contact:

Company Enquiries

Joshua Quinn, Company Secretary

1. 9236 [e-mail]

Media Enquiries

[e-mail]

About WOOBOARD TECHNOLOGIES

WOOBOARD TECHNOLOGIES (ASX:WOO) is an Australian-basedsoftware-as-a-service solutions company that provides enterprises with a range of services based on its proprietary employee reward, recognition and mindfulness platform, WooBoard. The focus is around creating happier and more productive employees by offering modules targeting mental health and wellbeing, skill building and performance optimisation of employees of large global enterprises.

Wooboard Technologies Ltd

ABN 64 600 717 539

Level 57, MLC Centre, 19-29 Martin Place, Sydney

For personal use only

ASX Announcement

31 January 2022

December 2021 Quarterly Update

WOOBOARD TECHNOLOGIES LTD (ASX: WOO) ("WOO", "Wooboard" or "the Company"), has today released its Appendix 4C and is pleased to provide an operational update for the quarter ended 31 December 2021.

Summary of activities for the period:

• WOO continues product development of "Sixty" in conjunction with WooBoard 2.0. Further, WOO has explored significant sales and technology integration partnerships for Sixty's launch in order to drive sales growth from enterprise clients.
• Capitalising on WOO's development and substantial investment in Sixty, WOO has attracted interest in Sixty from Slik (slikpro.com) after a global search for an ideal reseller and technology partner.
• Slik is headquartered in Argentina and targets the Latin American Market ("LAM") with ambitions for expansion into further English speaking markets, including the Asia Pacific Region ("APAC"). Slik has over 150,000 users including clients such as Toyota, Starbucks, DHL, PF Changs, AXZ Ecolab, Honda, Heineken and Danone.
• WOO and Slik have spent months in discussions as to technology sharing and reseller agreements. The parties have identified major opportunities in integrating Sixty in to Slik's product suite.
• Slik believes that it can integrate and sell Sixty to its enterprise clients globally. Slik has particularly been looking for a product such as Sixty and was considering developing a similar product internally. WOO and Slik realise there are significant advantages in working together and capitalising on each other's comparative advantages in each other's core markets.
• As part of months of negotiations that occurred during the December quarter and throughout January, WOO and Slik have entered into an agreement (subject to final due diligence by both parties) for WOO to be the exclusive reseller of Slik's products in the APAC region and for Slik to be a reseller of Sixty in the LAM region. Due to the strong technological synergies between the product offerings, the companies anticipate the seamless integration of product suites.
• Slik's highly experienced and respected team will assist WOO with the technological integrations. As part of the transaction, WOO has executed a term sheet subject to final due diligence to acquire 20% of Slik (slikpro.com) for USD$800,000 and enter into the exclusive reseller agreement for a period of 50 years with an option to renew for an additional 50 years.

Wooboard Technologies Ltd

ABN 64 600 717 539

Level 57, MLC Centre, 19-29 Martin Place, Sydney

For personal use only

• Compared to prior capital raisings conducted by Slik from respected VCs, this investment by WOO in the Slik head company is on highly favourable terms to WOO in recognition of the strong contributions WOO will make to the partnership with Slik.
• WOO's main motivation for the transaction is to drive sales for Sixty in an accelerated manner. The Directors having assessed extensive options feel that the best way to achieve results as soon as possible on the sales front post launch is through bringing on a strong technology and sales partner such as Slik that already has a large number of users and major enterprises as clients. This proves cost and time effective to be able to integrate with a partner who already has clients such as Toyota, Honda, Heinekin, DHL and Danone. To derive such relationships from scratch would be a time intensive and costly exercise for WOO if we were to 'go it alone'.
• Slik's team anticipates strong interest from its existing enterprise clients.
• Due to the immense potential and numerous advantages this partnership brings to WOO and Slik, WOO's directors have been encouraged by our corporate advisors to leverage Slik's desire to work with Sixty in order to negotiate an investment in Slik's head company by WOO on favourable terms. WOO's directors do not wish to raise capital at the current undervalued share price. Therefore, WOO intends to fund this USD$800,000 investment in Slik by way of a 12 month convertible note, to be issued to institutional investors at a coupon of 6% per annum and a conversion price of $0.0035 (WOO's current share price is $0.001 as at 31 January 2022 so the conversion price reflects a 250% premium to the current share price).

Corporate

The Company's cash position as 31 December 2021 was $1,724,000. Cash outflow for the quarter was $746,000 as the Company continued to research, develop, and test the commercial product offering.

ASX Additional Information - Appendix 4C, Item 6.1

During the period, the Company paid fees and remuneration to directors in an amount of $107,416. No other payments to related parties were made.

Other items

During the quarter, the Company settled a commercial dispute with an IT vendor as to the fees charged for services. In the upcoming quarter, the Company anticipates lower staffing costs if it is able to complete the transaction with Slik. By leveraging off Slik's technology team as part of the partnership, WOO believes it can significantly make IT development costs more efficient through the technology sharing arrangement with Slik.

Wooboard Technologies Ltd

ABN 64 600 717 539

Level 57, MLC Centre, 19-29 Martin Place, Sydney

For personal use only

Authorised for release by the Board of WooBoard Technologies Ltd.

	- ENDS -
For further information, please contact:
Company Enquiries	Media Enquiries
Joshua Quinn, Company Secretary	[e-mail]
[phone]
[e-mail]

About WOOBOARD TECHNOLOGIES

WOOBOARD TECHNOLOGIES (ASX:WOO) is an Australian-basedsoftware-as-a-service solutions company that provides enterprises with a range of services based on its proprietary employee reward, recognition and mindfulness platform, WooBoard. The focus is around creating happier and more productive employees by offering modules targeting mental health and wellbeing, skill building and performance optimisation of employees of large global enterprises.

Wooboard Technologies Ltd

ABN 64 600 717 539

Level 57, MLC Centre, 19-29 Martin Place, Sydney

Rule 4.7B

For personal use only

Appendix 4C

Quarterly cash flow report for entities

subject to Listing Rule 4.7B

Name of entity

WOOBOARD TECHNOLOGIES LIMITED

ABN		Quarter ended ("current quarter")
64 600 717 539	31-December-2021
	Consolidated statement of cash flows	Current quarter	Year to date
		$A'000	(6 months)
			$A'000
1	Cash flows from operating activities	5	12
1.1	Receipts from customers

1.2 Payments for

	(a)	research and development	‐	‐
	(b) product manufacturing and operating costs	(186)	(515)
	(c)	advertising and marketing
	(28)	(92)
	(d)	leased assets	‐	‐
	(e)	staff costs	(425)	(787)
	(f) administration and corporate costs	(149)	(388)
1.3	Dividends received(see note 3)	‐	‐
1.4	Interest received	‐	‐
1.5	Interest and other costs of finance paid	‐	‐
1.6	Income taxes paid	‐	‐
1.7	Government grants and tax incentives	37		37
1.8	Other (Profit on sale of shares)	‐		‐
1.9	Net cash from / (used in) operating activities	(746)	(1,733)

2 Cash flows from investing activities

2.1 Payments to acquire:

(a)	entities	‐	‐
(b)	businesses	‐	‐
(c) property, plant and equipment	‐	(8)
(d)	investments	‐	‐
(e)	intellectual property	‐	‐
(f) other (Loyyal Bid Process)	‐	‐

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