Spacetalk Ltd. provide update on its JumpySIM Mobile Virtual Network Operator project. JumpySIM in Australia: Spacetalk has entered into agreements to provide a JumpySIM virtual mobile network service in Australia. JumpySIM in Australia will use part of Telstra's 4G and 3G1 mobile network.

Once JumpySIM is launched, Spacetalk wearables (Kids, Adventurer and Life) sold through Australian e-commerce and retail channels will include A JumpySIM mobile networked SIM. JumpySIM service subscriptions in Australia will come bundled with a Spacetalk App subscription for Kids and Adventurer wearables. Users of other mobile services will still need to purchase a Spacetalk App subscription separately.

The Company believes the bundling of the App fee with the JumpySIM subscription fee will significantly simplify and enhance the Spacetalk customer proposition and user experience. The LAUNCH of JumpySIM in Australia is expected to generate new and additional recurring revenues. It is anticipated that JumpySIM in Australia will generate a marginal additional gross margin in the order of AU$2-3 per user per month.

It is also anticipated that JumpySIM will reduce churn in recurring app fee subscriptions. Spacetalk is planning to launch JumpySIM in Australia during 1QFY23 in advance of the Black Friday and Cyber Monday sales period. The cost of implementation and development will be met from within the Company's existing financial resources.

JumpySIM in USA: Spacetalk confirmed that JumpySIM has launched in the United States. Subject to a brief inventory transition period, all Spacetalk wearables sold in the US through on-line and retail channels will come bundled with a JumpySIM cellular (mobile) network SIM. As also previously advised, Spacetalk anticipates that JumpySIM's US service will generate a gross margin in the order of US$4-5 per month per user.

JumpySIM operates on the AT&T network and provides customers with a wearables mobile service tailored for kid's.