Engage:BDR : EN1 2021 Financials Commentary

31 March 2022

ASX ANNOUNCEMENT

2021 Audited Financials Commentary

2021 Audited Highlights:

•  Revenue 2021 down to $11.4M from $15.4M (2020) 26% in AUD; US$8.6M down from US$10.6M (2020) 19% in USD

•  EBITDA Operating Loss ($2.6M)

•  NPAT improved 12% to ($6.1M) from ($6.9M) in 2020

•  Net positive cash flow from operating activities $139K

•  Employee and Contractor costs improved 46% to $2.9M from

  $4.5M in 2020

•  Operations and administration expenses improved 22% to $4M

  from $5.1M in 2020

•  Finance costs improved 85% to $302K from $2M (2020)

•  Impairment losses improved 100% to $0 from $856K (2020)

•  Advertising & Marketing expenses improved 95% to $8K from

  $138K (2020)

•  Borrowings improved 86% to $330K from $2.3M (2020)

 Total Liabilities improved 17% to $5.2M from $6.2M (2020)

 Share based payment expenses improved 76% to $422K from

$1.7M (2020)

engage:BDR LTD trading as colorTV ("EN1 or Company") (ASX:EN1) is pleased to present its financial commentary for the 2021 full year audited financials.

Audited results:

EBITDA Operating Loss	($2.6M)
---------------- below the line, non-operational expenses ------------------
Depreciation & Amortisation	$1.66M
Share-based Payments	$422K
Finance Costs	$302K
Movement for Expected Credit Loss	$150K
Movement in Fair Value of Financial Assets	$62K
Settlement Expenses	$962K
Loss after Taxes	($6.1M)

Revenue

The Company generated less revenue in 2021 due to customer technical issues which originated in August 2021. After the technical issues were resolved, the large client blocked all advertising in the gaming category, which was the primary category of inventory the Company focused on for years, by request of this client. Management has been feverishly on-boarding new publishers in the new categories which the client has approved.

The Company did not have optimal revenue distribution across several clients until 2021. Management focused to on-board 19 new clients between Q4 2021 and Q1 2022 to work to offset revenue losses from the previous large clients. With these large new clients ramping up, Management is confident even revenue distribution will be finally achieved.

New Clients On-Boarded:

Q1 2022:

Sparc media (buyer) Team 8 (buyer)

mommy poppins (supply) Mintegral (supply) Ximad (supply) Consumable Media (supply) Moneytag (supply)

Sayollo (supply) Digicel (supply) Venatus (supply) The First (supply) Edge226 (supply)

Q4 2021: e-planning (buyer) RTB House (buyer) add3 (buyer)

OTT Advisors (buyer) Greedy Games (supply) Times of India (supply)

EBITDA (operating profit) & NPAT

EBITDA (operating loss) in 2021 resulted in ($2.6M). The key differences between EBITDA and NPAT figures are directly related to non-operational items interest expense (finance costs) ($302K), depreciation and amortisation ($1.66M), settlement expenses ($962K), share-based payments ($422K), movements for expected credit loss ($150K) and movement in fair value of financial assets ($62K).

NPAT improved 12% to ($6.1M) from ($6.9M) in 2020, despite revenue loss.

Balance Sheet

Net assets reduced to $5.5M from $8.6M (2020). Liabilities decreased to $5.2M from $6.2M (2020). Cash balance as of 30 June 2021 was $401K.

Cashflow from Operating Activities

EN1 yielded net positive cash flow of $139K (from operating activities) for the entire 2021 period. This figure does not include any financing activities and is limited to operating activities only.

Difference in Appendix 4E and Annual Report

The Company advises that there is a difference between the loss and net assets reported in its 31 December 2021 Appendix 4E and Preliminary Report announced 28 February 2022 compared to the 31 December 2021 Annual Report lodged today.

The Appendix 4E and Preliminary Report disclosed an after-tax loss of $5,928,649. The 31 December 2021 Annual Report discloses an after tax loss of $6,179,036 resulting in an increase of $250,387 on the loss previously reported. The difference is a result of recognition of additional share-based payments and recording of additional amortisation.

The Appendix 4E and Preliminary Report disclosed Net Assets of $5,502,856. The 31 December 2021 Annual Report discloses Net Assets of $5,189,422, resulting in a decrease of $313,434 on the loss previously reported. The difference is a result of recognition of additional amortisation.

About CTV / OTT

OTT is a term established in the US around 2017, and until recently, not common in AU and the rest of the world. OTT is derived from supplying consumers with TV content over and above the legacy broadcast: analogue and cable. It's the supply of content over an IP stream (Internet). In AU, that means digital screen and specifically app viewing environments on the largest screen in the home - the television.

CTV is simply a screen for consuming IP delivered content (via the Internet) consumed through an app. This refers to both SVOD (subscription video on demand) and ad supported content (CTV ads), commonly available through the app stores on most smart TV's and devices such as Roku, AppleTV, Amazon Fire, Xbox, PlayStation, etc.

About engage:BDR Limited engage:BDR Limited's proprietary technology is used to automate and optimise the sale of advertising inventory from digital publishers, specifically focused in the CTV / OTT arena. The Company's proprietary technology (developed in-house) allows digital publishers to monetise available advertising space by making the inventory available to thousands of advertisers at the same time, through real-time bidding auctions.

We encourage our Shareholders to register their details using the QR Code below to ensure they're kept up to date with the latest news and to be notified of any upcoming Shareholder presentations or events.

For further investor enquires please contact Viriathus Capital on 1300 509 924 [e-mail].

On behalf of the Board

Ted Dhanik

Co-Founder and Executive Chairman

Forward Looking Statements

Preliminary financial results published above are subject to audit, adjustment and closing, as they are estimates and figures may be rounded. Statements made in this release which are forward-looking statements and are based on the Company's expectations, estimates and projections. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "guidance" and similar expressions