IXUP : Appendix 4C & Quarterly Activities Report

For personal use only

29 July 2022

Appendix 4C & Quarterly Activities Report

IXUP makes commercial progress on core technology, commercialisation opportunities and recent acquisitions

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 fourth quarter ended 30 June 2022 (Q4 FY22).

Q4 Highlights

• IXUP continues to progress collaboration with GeoComply Solutions and Conscious Gaming for the commercialisation of the 'PlayPause' product which is powered using IXUP technology.
• IXUP commenced a global collaboration with Microsoft to assist IXUP to bring powerful privacy enhancing technology to the ESG challenges of responsible gaming.
• DataPOWA business continues to gain traction, signing up eight new customers in the quarter.
• Large US Health Insurer re-signs annual licence agreement for FY23.

IXUP continues to progress its collaboration with partners GeoComply Solutions Inc (GeoComply) and Conscious Gaming (together the "Collaboration Partners") to leverage IXUP's technology within the fast-growing USA online sports betting markets. These initiatives are being progressed in accordance with the Pilot Collaboration Agreement signed between the Collaboration Partners, announced by IXUP on 5 October 2021. A commercial trial is expected to commence in coming quarters.

IXUP commenced a global Collaboration with Microsoft Research in the quarter, having implemented Microsoft's SEAL homomorphic encryption technology to assist IXUP to solve the challenges of responsible gaming and sports integrity. This collaboration acknowledges IXUP's efforts and focus, which are considered an important ESG initiative to address the challenges of responsible gaming. IXUP is proud to be working with Microsoft on our various commercialisation initiatives.

IXUP's 100% owned subsidiary DataPOWA continues to advance its sales pipeline, signing the Sydney Rugby Union for the 2022 Charter Hall Shute Shield season. Additionally, DataPOWA has added a further seven clients in Europe during the quarter and continues to make sound progress in pipeline growth in various international jurisdictions, which is expected to lead to further revenue growth in coming quarters from the business.

IXUP has also recently re-signed the existing major Health Insurance customer in the US. This customer, who has signed on an annual license for the remainder of FY23 will continue to utilise the recently acquired Data Republic Sandbox product.

For personal use only

Q2 Financial Update

Net cash outflows from operations were $2.24 million for the quarter. Receipts from customers for the quarter totalled $130,820 comprising revenue from both of our recent acquisitions. The material expense items of Staff Costs and Administration & Corporate Costs, being $1.55 million and $0.4 million respectively.

Net cash outflows from investing activities were $0.39 million for the quarter, of which $0.04m being related to a security deposit over the newly lease North Sydney office and $0.35m being related to a convertible note in Ziroh Labs which supplies homomorphic libraries to IXUP.

Net cash outflows from financing activities were $0.003 million for the quarter.

Directors, being related parties of the Company, were paid remuneration in the amount of $144,050 during the June 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.

	-ENDS-
This announcement has been approved for release by the Board of IXUP.
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 Tenancy 1004, Building 10 Sub base Platypus, 120 High Street North Sydney NSW 2060.

Rule 4.7B

Appendix 4C

For personal use only

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	Jun-22
Consolidated statement of cash flows	Current quarter	Year to date (12
	$A	months)
		$A

1. Cash flows from operating activities

1.1

Receipts from customers

130,820

594,244

1.2 Payments for

	(a)	research and development	(107,076)	(498,067)
	(b)	product manufacturing and operating	(287,565)	(548,659)
		costs
	(c)	advertising and marketing	(2,216)	(52,936)
	(d)	leased assets	(35,520)	(134,121)
	(e)	staff costs	(1,547,263)	(6,082,619)
	(f)	administration and corporate costs	(399,109)	(4,126,776)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	1,195	1,482
1.5	Interest and other costs of finance paid	-	(1,096)
1.6	Income taxes paid	-	-
1.7	Government grants and tax incentives	-	290,305
1.8	Other	-	-
1.9	Net cash from / (used in) operating	(2,246,734)	(10,558,243)
	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	(5,728)	(28,215)
(d)	investments	(384,141)	(484,141)
(e)	intellectual property	-	-
(f)	other non-current assets	-	-

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 (12
	$A	months)
		$A

2.2 Proceeds from disposal of:

	(a)	entities	-	-
	(b)	businesses	-	-
	(c)	property, plant and equipment	-	-
	(d)	investments	-	-
	(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	(389,869)	(3,435,148)
	activities

3. Cash flows from financing activities

3.1 Proceeds from issues of equity securities

	(excluding convertible debt securities)	-	10,000,000
3.2	Proceeds from issue of convertible debt	-	-
	securities
3.3	Proceeds from exercise of options	-	4,837,929
3.4	Transaction costs related to issues of	-	(964,408)
	equity securities or convertible debt
	securities
3.5	Proceeds from borrowings	-	-
3.6	Repayment of borrowings	(2,520)	(9,525)
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	(2,520)	13,934,612
	activities

4. Net increase / (decrease) in cash and cash equivalents for the period

4.1 Cash and cash equivalents at beginning of

	period	7,358,729	4,824,960
4.2	Net cash from / (used in) operating	(2,246,734)	(10,558,243)
	activities (item 1.9 above)

ASX Listing Rules Appendix 4C (17/07/20)	Page 2
+ 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

Consolidated statement of cash flows	Current quarter	Year to date (12
	$A	months)
		$A

For personal use only

4.3	Net cash from / (used in) investing activities	(389,869)	(3,435,148)
	(item 2.6 above)
4.4	Net cash from / (used in) financing activities	(2,520)	13,934,612
	(item 3.10 above)
4.5	Effect of movement in exchange rates on	(2,896)	(49,471)
	cash held
4.6	Cash and cash equivalents at end of	4,716,710	4,716,710
	period

5.	Reconciliation of cash and cash	Current quarter	Previous quarter
	equivalents	$A	$A
	at the end of the quarter (as shown in the
	consolidated statement of cash flows) to the
	related items in the accounts
5.1	Bank balances	4,716,710	7,358,729
5.2	Call deposits	-	-
5.3	Bank overdrafts	-	-
5.4	Other	142,941	100,000
5.5	Cash and cash equivalents at end of	4,859,651	7,458,729
	quarter (should equal item 4.6 above).
	As at 30 June 2022 IXUP has $100k in
	Term Deposits maturing 09/01/2023 and
	$43k security deposit related to office
	lease.
	Total cash on hand and in term deposits
	at end of current quarter totals
	$4,859,651.

6.	Payments to related parties of the entity and their	Current quarter
	associates	$A
6.1	Aggregate amount of payments to these parties included in item 1.2	(144,050)
6.2	Aggregate amount of cash flow from loans to these parties included	-
	in item 2.3

"Notes

6.1 Directors, being related parties of the Company, were paid remuneration in the amount of $144,050 during the June quarter. No other related party payments were made."

ASX Listing Rules Appendix 4C (17/07/20)	Page 3
+ See chapter 19 of the ASX Listing Rules for defined terms.