Universal Biosensors : December 2021 Appendix 4C and Quarterly Activity Report

For personal use only

Universal Biosensors, Inc.

ARBN 121 559 993

1 Corporate Avenue

Rowville Victoria 3178

Australia

Telephone [phone]

Facsimile [phone]

[e-mail]

www.universalbiosensors.com

28 January 2022

Universal Biosensors, Inc.

December 2021 Quarterly Activity Report

Universal Biosensors, Inc. (ASX:UBI) (UBI) has today released its cash flow report (ASX Appendix 4C) and quarterly activity report for the quarter ended 31 December 2021 (Q4 2021).

UBI is developing and commercializing a range of biosensors in oenology (wine industry), human health including oncology, coagulation, COVID-19, women's health and fertility, non-human and environmental testing using our patented platform technology and hand-held point of use devices.

The primary focus of UBI's activities during the fourth quarter of 2021 were:

• The sale of Sentia's wine testing Free Sulphur Dioxide product and the hiring of a direct sales force in the USA;
• The finalization and launch of new Sentia wine testing products including Malic Acid, Glucose and Fructose;
• The development of additional Sentia wine testing products including Acetic Acid and Total Acid tests;
• The commencement of clinical studies and the recruitment of "first patient" across 4 sites in the USA for our next generation PT-INR Coagulation platform (Xprecia Prime);
• The commencement of an Investigational Clinical Study (300 patient/+) for our Tn Antigen biosensor used for the detection, staging and monitoring of cancer;
• The continued development of our diabetes detection and monitoring biosensor product in animals;
• The successful development of next generation aptamer based sensing technology;
• The successful development of an affordable N-Protein based COVID-19 test;
• The generation and transformation of our HRL laboratory business in Canada; and
• The sale of Xprecia Stride coagulation products.

OPERATIONS

In December 2021, the Company entered into a global exclusive license agreement with IQ Science Limited for commercialization of a SARS-CoV-2N-Protein detection test (which is the virus that causes COVID-19)('COVID-19 test'). The COVID-19 test will use the Company's proprietary electrochemical strip and device technology designed to provide a positive or negative result as to a patient's viral status within thirty seconds (based on internal validation work performed to date) from a small saliva sample. The Company's electrochemical test method also has the potential to measure the relative viral load associated with a patient's infection status.

The deal with IQ Science is an important breakthrough for the Company since it will be the first time our platform will use aptamers as a detection technique. Aptamers are a next generation biorecognition element which when combined with our existing technology platform should allow us to detect and measure a large number of targets. Based on what we know is available in the world today, a COVID-19 test offering an accurate result within thirty seconds of the patient sample will be the first of its kind globally.

UBI entered into a development agreement with IQ Science for a number of fertility biomarkers aimed at improving the available information for people interested in fertility. UBI believes this is a multi-billion-dollar market and we should have results from this development effort available in H1 2022.

For personal use only

Universal Biosensors, Inc.

ARBN 121 559 993

1 Corporate Avenue

Rowville Victoria 3178

Australia

Telephone [phone]

Facsimile [phone]

[e-mail]

www.universalbiosensors.com

FINANCIAL UPDATE

Net cash (cash and cash equivalents less short and long-term debt) as at 31 December 2021 was $18.1 million.

Highlights are as follows:

• Receipts from customers during the three months ended 31 December 2021 increased by 255% to $1.3 million compared to the previous corresponding period
• Receipts from customers during the twelve months ended 31 December 2021 increased by 412% to $4.0 million compared to the previous corresponding period
• Total revenue for the twelve months ended 31 December 2021 increased by 80% to $5.8 million compared to the previous corresponding period
• UBI invested $9.3 million in research and development activities in 2021 ($5.0 million in 2020)

The primary reasons for the increase in receipts from customers included:

• the Company benefited from a new revenue stream in 2021 following the successful global launch of our Sentia Free Sulphur Dioxide wine testing product;
• the contract liability (deferred revenue) relating to the Company's obligation to transfer Xprecia Stride strips to Siemens which was received in 2019 was fully utilised in Q2 of 2021; and
• our revenue from coagulation testing increased by 245% year on year due to our subsidiary, Hemostasis Reference Laboratory Inc. entering into a number of new contracts, including a contract with Bayer Inc.

Development expenditure increased during the year ended 31 December 2021 because the Company invested in multiple development projects (detailed above). In October 2021, the Company received $2.8 million under the R&D Tax Incentive rebate.

Payments of $63,000 as disclosed in item 6 of the attached Appendix 4C comprised of the non-executive directors' fees, allowances and superannuation.

For further information, please contact:

John Sharman

Chief Executive Officer [phone]

Announcement authorised by the Board of Directors of Universal Biosensors, Inc.

For personal use only

Rule 4.7B

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Name of entity

UNIVERSAL BIOSENSORS, INC.
ABN	Quarter ended ("current quarter")
67 950 836 446	31 December 2021

Consolidated statement of cash flows	Current quarter	Year to date (12
			$A'000	months)
				$A'000
1.	Cash flows from operating activities
1.1	Receipts from customers	1,270	3,973
1.2	Payments for
	(a)	research and development	(982)	(4,017)
	(b) product manufacturing and operating	(626)	(2,251)
		costs
	(c)	advertising and marketing	(204)	(517)
	(d)	leased assets	(192)	(797)
	(e)	staff costs	(1,960)	(6,942)
	(f) administration and corporate costs	(664)	(2,709)
1.3	Dividends received (see note 3)
1.4	Interest received	13	59
1.5	Interest and other costs of finance paid
1.6	Income taxes paid
1.7	Government grants and tax incentives	2,826	3,128
1.8	Other (provide details if material)	36	177
1.9	Net cash from / (used in) operating	(483)	(9,896)
	activities
2.	Cash flows from investing activities
2.1	Payments to acquire or for:
	(a)	entities
	(b)	businesses
	(c) property, plant and equipment	(189)	(665)
	(d)	investments
	(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.

For personal use only

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'000	months)
				$A'000
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 (provide details if material)
2.6	Net cash from / (used in) investing	(189)	(665)
	activities

3. Cash flows from financing activities

1. Proceeds from issues of equity securities (excluding convertible debt securities)
2. Proceeds from issue of convertible debt securities

3.3

Proceeds from exercise of options

9

75

3.4 Transaction costs related to issues of equity securities or convertible debt securities

3.5	Proceeds from borrowings	0	20
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	9	95
activities

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

4.1 Cash and cash equivalents at beginning of

	period	18,699	28,055
4.2	Net cash from / (used in) operating	(483)	(9,896)
	activities (item 1.9 above)
4.3	Net cash from / (used in) investing activities	(189)	(665)
	(item 2.6 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

For personal use only

Consolidated statement of cash flows	Current quarter	Year to date (12
		$A'000	months)
			$A'000
4.4	Net cash from / (used in) financing activities	9	95
	(item 3.10 above)
4.5	Effect of movement in exchange rates on	63	510
	cash held
4.6	Cash and cash equivalents at end of	18,099	18,099
	period
5.	Reconciliation of cash and cash	Current quarter	Previous quarter
	equivalents	$A'000	$A'000
	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	15,318	15,406
5.2	Call deposits
5.3	Bank overdrafts
5.4	Other (provide details)	2,781	3,293
	The Company maintains restricted cash
	which includes tenant security deposits,
	credit card security deposits and a letter of
	credit issued in favour of a Customer.
5.5	Cash and cash equivalents at end of	18,099	18,699
	quarter (should equal item 4.6 above)
6.	Payments to related parties of the entity and their	Current quarter
	associates		$A'000
6.1	Aggregate amount of payments to related parties and their	63
	associates included in item 1

6.2 Aggregate amount of payments to related parties and their associates included in item 2

Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.

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