__________________________________________________________________________________________________ Applyflow Ltd . ABN 29 107 371 497 Level 4 82 Elizabeth Street Sydney NSW 2000 ASX RELEASE 29 October 202 1 September 202 1 Quarterly Activities Report Highlights Q 1 FY 22: • C losed a $5.66 million Underwritten Non - Renounceable Entitlements Offer, with the Company receiving applications for $3 million from existing shareholders • Accelerating g rowth for the third consecutive quarter, cash receipts up 10% QoQ • 92% of Applyflow SaaS customers are now on 12 – 3 6 month contracts, shifting focus to new business • 12 month contract renewal with g lobal recruiter Adecco • Significant Applypay development readying for public beta and launch in Q2 FY22 Subsequent to Q 1 FY 2 2 : • Marquee partnerships with Hudson to lead roll - out of Applypa y as its exclusive finance solution for the recruitment market • Strategic sales & operational hires appointed to drive the launch of Applypay in Q 2 FY 22 Applyflow SaaS growth Applyflow has transitioned the basis upon which it transacts with 92% of its customers on to contracts with durations of 12 - months up to 36 months at the end of Q1 FY22 . The achievements of this period have seen steady growth in quarterly revenue over the last thre e quarters – being the three full quarters over which the Applyflow Platform has been available: Q3 FY21 Q4 FY21 Q1 FY22 Cash receipts $593,000 $627,000 $688,000 Growth 6% 10% Against a backdrop of COVID influencing sales early in the quarter, a significant highlight in Q 1 FY 22 was the signing of Adecco for a further 12 month contract. __________________________________________________________________________________________________ Applyflow Ltd . ABN 29 107 371 497 Level 4 82 Elizabeth Street Sydney NSW 2000 In line with Applyflow having transitioned its existing customer s onto longer - term contracts, the sales rhythm is now shifting into a focus o f adding to Applyflow’s customer base. The scalability of the Applyflow Platform means there are minimal incremental COGS and limited friction for new sales and the subsequent onboarding process. Q1 FY22 closed with a strong pipeline for conversion into new sales in Q2 FY 22 . Subsequent to the close of the quarter, Applyflow has entered into agreements with additional recruitment firms, including Frontline Recruitment Group. Steve Butler, CEO of Applyflow, said “ We’re very pleased to have retained the majority of our customers onto longer - term contracts , giving both our customers and our business certainty over the medium to long term.” “I’m excited to see momentum b uild as we shift focus to new customer acquisition and onboard ing new talent to accelerate sales.” Product development Following the launch of the Applyflow Platform, development capacity has existed within Applyflow which has permitted the further devel opment of Applypay to occur concurrently with the continuing development of the Applyflow Platform. Applyflow thus achieved rapid progress in the development of Applypay through Q1 FY22 without a significant change in the cost structure. Applypay opportunity Applypay is the Company’s instalment - based finance solution for recruitment invoices. Applypay’s initial focus is on servicing the Australian recruitment market. I t’s a market with large potential for Applypay with IBIS World estimating that the Australian Employment Placement and Recruitment Services industry has a market size of approximately $15 billion. 1 1 https://www.ibisworld.com/au/industry/employment - placement - recruitment - services/569/ __________________________________________________________________________________________________ Applyflow Ltd . ABN 29 107 371 497 Level 4 82 Elizabeth Street Sydney NSW 2000 Applyflow has existing relationships through its Applyflo w Platform with over 250 recruitment agencies . These relationships provide a basis for Applypay to make swift inroads in the industry; recruiters issue invoices and Applypay’s achievement of market share will rely on having recruiters onside to propose a w in - win financing solution to their clients. Subsequent to the close of the quarter, Applyflow announced a strategic partnership with Hudson Global Resources (Aust) Pty Ltd for the roll - out of the Applypay solution for Hudson’s recruiter invoices, together with joint development and marketing initiatives for Applypay. Hudson is a market - leader in the Asia - Pacific recruitment market, with revenue in its Australian operations in FY2 2 set to exceed A$ 375 million. The joint collaboration on the development of the Applypay solution in the Australian market will apply initially to the permanent placement recruitment market, with a commitment to expand into contract - labour and talent management revenue str eams. Applypay is uniquely placed to succeed with Applyflow’s significant B oard and management experience in the consumer and commercial instalment - based payment industry. Applyflow is primed to support the launch of Applypay with the capacity to: - fund initial transactions on its balance sheet – although Applyflow is in ongoing discussions with debt providers; - invest in marketing linked to its adoption by Hudson; and - invest in a lean team to lead the successful launch of an innovative payments solution. Applyflow expects Applypay to develop to launch in late 2021 . Steve Butler, CEO of Applyflow, said “With the commitment from Hudson, we’ve validated Applypay’s product fit and solidified a very exciting path to underpin the successful launch of Applypay. ” “ Our strong relationships with some of the largest recruitment agencies in the world and over 250 existing clients present a unique advantage to accelerate the adoption of Applypay in a huge market in need of modern financing solution s.” __________________________________________________________________________________________________ Applyflow Ltd . ABN 29 107 371 497 Level 4 82 Elizabeth Street Sydney NSW 2000 Capital raising Applyflow’s capital raising initiative announced on 1 July 2021 saw $5.66 million raised in a fully underwritten entitlement offer. Of the $5.66 million raised, $3 million was received from existing shareholders. The rais e, lead by Regal Funds Management and Thorney was conducted to continue the product development and growth of the Applyflow SaaS Platform , and the development of Applypay and initial marketplace testing . Summary of expenditure for the quarter and related party payments During the quarter, the group’s total operating expenses (excluding depreciation, amortisation, impairment and share based payments) were approximately $ 1,092 ,000, comprised of R&D ($13,000), staff costs ($6 2 1,000), and administration and corporate costs ($ 45 8,000). In accordance with ASX Listing Rule 4.7C.3, payments to related parties and their associates outlined in Item 6 of the Company’s Appendix 4C were for salary and superannuation of Directors and fees for legal services provided by a law firm associated with Mr Papadopoulos. The C ompany’s cash balance as at 30 September 2021 was approximately $6.9 2 million. --- This announcement was approved for release to ASX by Applyflow ’s Board of Directors. Contact Steve Butler John Winters CEO Non - Executive Director email@example.com firstname.lastname@example.org __________________________________________________________________________________________________ Applyflow Ltd . ABN 29 107 371 497 Level 4 82 Elizabeth Street Sydney NSW 2000 About Applyflow Applyflow is on a mission to make the recruitment experience better for everyone by giving recruiters an easy to use yet powerful tech solution to manage their entire business flow. A fresh take on what the recruitment process should be and the tools your team needs to make it a reality. Rule 4.7B A SX Listing Rules Appendix 4C (1 7 / 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 Name of entity APPLYFLOW LIMITED ABN Quarter ended (“current quarter”) 29 107 371 497 3 0 September 2021 Consolidated statement of cash flows Current quarter $A’000 Year to date ( 3 months) $A’000 1. Cash flows from operating activities 6 88 688 1.1 Receipts from customers 1.2 Payments for (1 3 ) (1 3 ) (a) research and development (b) product manufacturing and operating costs (c) advertising and marketing (d) leased assets (e) staff costs ( 6 21 ) ( 6 21 ) (f) administration and corporate costs ( 458 ) ( 4 58 ) 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid ( 3 ) ( 3 ) 1.6 Income taxes paid 1.7 Government grants and tax incentives 1.8 Other (provide details if material) (22) (22) 1.9 Net cash from / (used in) operating activities ( 4 29 ) ( 4 29 ) 2. Cash flows from investing activities 2.1 Payments to acquire or for : (a) entities (b) businesses (c) property, plant and equipment ( 2 ) ( 2 ) (d) investments (e) intellectual property (development of Applyflow platform) (100) ( 100 ) Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B A SX Listing Rules Appendix 4C (1 7 / 07 / 20 ) Page 2 + See chapter 19 of the ASX Listing Rules for defined terms. Consolidated statement of cash flows Current quarter $A’000 Year to date ( 3 months) $A’000 (f) other non - current assets 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 19 1 9 2.3 Cash flows from loans to other entities 2.4 Dividends received (see n ote 3 ) 2.5 Other (provide details if material) 2.6 Net cash from / (used in) investing activities ( 83 ) ( 83 ) 3. Cash flows from financing activities 5,662 5,662 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 3.2 Proceeds from issue of convertible debt securities 3.3 Proceeds from exercise of options 26 26 3.4 Transaction costs related to issues of equity securities or convertible debt securities ( 422 ) ( 422 ) 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) lease repayment ( 3 6) ( 36 ) 3.10 Net cash from / (used in) financing activities 5,2 30 5,2 30 4. Net increase / (decrease) in cash and cash equivalents for the period 2, 207 2,207 4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) ( 4 29 ) ( 4 29 ) Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B A SX Listing Rules Appendix 4C (1 7 / 07 / 20 ) Page 3 + See chapter 19 of the ASX Listing Rules for defined terms. Consolidated statement of cash flows Current quarter $A’000 Year to date ( 3 months) $A’000 4.3 Net cash from / (used in) investing activities (item 2.6 above) ( 83 ) ( 83 ) 4.4 Net cash from / (used in ) financing activities (item 3.10 above) 5,2 3 0 5,2 3 0 4.5 Effect of movement in exchange rates on cash held ( 6 ) ( 6 ) 4.6 Cash and cash equivalents at end of period 6, 919 6, 919 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, 908 1, 197 5.2 Call deposits 1, 01 1 1, 010 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) 6, 919 2, 207 6 . Payments to related parties of the entity and their associates Current quarter $A'000 6 .1 Aggregate amount of payments to related parties and their associates included in item 1 1 01 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 . Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B A SX Listing Rules Appendix 4C (1 7 / 07 / 20 ) Page 4 + See chapter 19 of the ASX Listing Rules for defined terms. 7 . Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 7 .1 Loan facilities - - 7 .2 Credit standby arrangements - - 7 .3 Other (please specify) - - 7 .4 Total financing facilities - - 7 .5 Unused financ ing facilities available at quarter end - 7 . 6 Include in the box below a description of each facility above, including the lender, interest rate , maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well. 8 . Estimated cash available for future operating activities $A’000 8 .1 Net cash from / (used in) operating activities ( i tem 1.9) ( 4 29 ) 8 .2 Cash and cash equi valents at quarter end ( i tem 4.6) 6, 919 8 .3 Unused finance facilities available at quarter end ( i tem 7 .5 ) - 8 .4 Total available funding ( i tem 8 .2 + i tem 8 .3) 6, 919 8.5 Estimated quarters of funding available ( i tem 8.4 divided by i tem 8.1) 1 6.1 Note: if the entity has reported positive net operating cash flows in item 1.9 , answer item 8.5 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.5 . 8 .6 If i tem 8 .5 is less than 2 quarters, please provide answers to the following questions : 8.6. 1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not? Answer: n/a 8.6. 2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful? Answer: n/a 8.6. 3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis? Answer: n/a Note: where i tem 8. 5 is less than 2 quarters , all of questions 8.6.1, 8.6.2 and 8.6.3 above must be answered. Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B A SX Listing Rules Appendix 4C (1 7 / 07 / 20 ) Page 5 + See chapter 19 of the ASX Listing Rules for defined terms. 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. Date: 29 October 2021 Au t horised by : By the board ( Name of body or officer authorising release – see note 4 ) Notes 1. Th is quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter , how they have been financed and the effect this has had on its cash position . An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so. 2. If this quarterly cash flow 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 cash flow report has been prepared in accordance with other accoun ting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard appl ies to this report. 3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depe nding on the accounting policy of the entity. 4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [ name of board committee – eg Audit and Risk Committee ] ”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”. 5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations , th e board should have receiv ed a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained , that this report complies with the appropriate accounting standards and give s a true and fair view of the cash flows of the entity , and that the ir opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively .