K2Fly : Appendix 4C – Quarterly Cash Flow Report

Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B

Appendix 4C

+Rule 4.7B

Quarterly report for entities subject to Listing Rule 4.7B

Introduced 31/03/00 Amended 30/09/01, 24/10/05, 17/12/10, 01/09/16

Name of entity

K2fly Ltd

Consolidated statement of cash flows	Current quarter $A'000	Year to date (6 months) $A'000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) research and development (b) costs of services sold, commissions and operating costs (c) advertising and marketing (d) leased assets (e) staff costs (f) administration and corporate costs 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 1.8 Other (reclassification of restricted cash) 1.9 Net cash from / (used in) operating activities	453 (47) (194) (74) - (362) (203) - - 2 - - (54)	1,120 (47) (329) (74) - (740) (630) - - - - - (54)
	(479)	(754)

ABN
69 125 345 502
2.	Cash flows from investing activities
2.1	Payments to acquire:

Quarter ended ("current quarter")

31 December 2017

(a) property, plant and equipment	(5)	(11)
(b) businesses (see item 10)	-	-
(c) investments	-	(475)

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Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Current quarter $A'000	Year to date (6 months) $A'000
(d) intellectual property (e) other non-current assets 2.2 Proceeds from disposal of: (a) property, plant and equipment (b) businesses (see item 10) (c) investments (d) intellectual property (e) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (cash on hand in subsidiaries on settlement) 2.6 Net cash from / (used in) investing activities	- - - - - - - - - 69	- - - - - - - - - 69
	64	(417)

3. Cash flows from financing activities 3.1 Proceeds from issues of shares 3.2 Proceeds from issue of convertible notes 3.3 Proceeds from exercise of share options 3.4 Transaction costs related to issues of shares, convertible notes or options 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities	- - - - - - - - -	- - - - - (150) - - -
	-	(150)

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

• 4.1 Cash and cash equivalents at beginning of quarter/year to date

• 4.2 Net cash from / (used in) operating activities (item 1.9 above)

• 4.3 Net cash from / (used in) investing activities (item 2.6 above)

• 4.4 Net cash from / (used in) financing activities (item 3.10 above)

838¹ (479)

1,744¹ (754)

64

(417)

-

(150)

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Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Current quarter $A'000	Year to date (6 months) $A'000
4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of quarter	1	1
	424	424

¹ The September 2017 Appendix 4C stated an opening cash balance of $1,852k however the correct opening balance (per the June 2017 audited accounts) is $1,744k. This adjustment has been corrected in the current quarters and year to date opening cash balances.

5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A'000	Previous quarter $A'000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	424 - - -	946 - - -
	424¹	946

¹ Cash balance is at 31 December 2017 and excludes proceeds from capital raising (refer ASX announcement 24 January 2018)

6.

6.1 6.2

6.3

Payments to directors of the entity and their associates	Current quarter
$A'000
Aggregate amount of payments to these parties included in item 1.2	(96)
Aggregate amount of cash flow from loans to these parties included
in item 2.3

Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2

• 7. Payments to related entities of the entity and their associates

  Current quarter

  $A'000

• 7.1 Aggregate amount of payments to these parties included in item 1.2

• 7.2 Aggregate amount of cash flow from loans to these parties included in item 2.3

  - -

• 7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

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Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B

• 8. Financing facilities available

  Add notes as necessary for an understanding of the position

• 8.1 Loan facilities

• 8.2 Credit standby arrangements

• 8.3 Other (please specify)

  Total facility amount at quarter end $A'000	Amount drawn at quarter end $A'000
  -	-
  -	-
  -	-

• 8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

9. Estimated cash outflows for next quarter	$A'000
9.1 Research and development 9.2 Product manufacturing and operating costs 9.3 Advertising and marketing 9.4 Leased assets 9.5 Staff costs 9.6 Administration and corporate costs 9.7 Other (capital raising fee) 9.8 Total estimated cash outflows	(85) (458) (37) - (256) (149) (73)
	(1,058)*

* This is an estimate of the total cash outflows of the Company for the next quarter and does not take into account any anticipated receipts from customers that is received during the quarter, so is not representative of the cash burn of the Company.

10. Acquisitions and disposals of business entities (items 2.1(b) and 2.2(b) above)	Acquisitions	Disposals
10.1 Name of entity	-	-
10.2 Place of incorporation or registration	-	-
10.3 Consideration for acquisition or disposal	-	-
10.4 Total net assets	-	-
10.5 Nature of business	-	-

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Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

Sign here:

..............................................

Date: ......... 31 January 2018 .............

Company secretary

Print name:

......... Melissa Chapman ................................................

Notes

• 1. The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

• 2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.

• 3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

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