AssetOwl Ltd ACN: 122 727 342 Level 14, 225 St George’s Terrace, Perth, Western Australia 6000 Telephone: (61) (8) 9424 9320 Facsimile: (61) (8) 9321 5932 www.assetowl.com ASX Announcement 29 October 2021 ASSETOWL QUARTERLY UDPATE AND A PPENDIX 4C For the period ended 30 September 2021 Highlights • Platform uptake accelerating, with 2 5 real estate agencies licensed onto the Pirsee Inspection Platform at the quarter’s end , complemented by agreements with 3 of the big 4 Perth - based outsourced real estate inspection providers • AssetOwl’s WA - based customers collectively have ~ 9,000 propert ies under management, representing an estimated 6 % of professionally managed properties in WA , in addition to the Company’s initial foothold in the Victorian market • The transition of customers from trial to paid licenses continues to accelerate , with building upon this momentum a key focus for management over the next quarter • Entry into Victoria, with two agencies signed onto the P latform • R&D Incentive Activities registered with AusIndustry. Receipt of $422,657 R&D Tax Incentive anticipated November 2021 Enterprise property management platform provider AssetOwl Limited (ASX: AO1, AssetOwl or the Company) is pleased to present its Appendix 4C — Quarterly Cash Flow Report for the period ended 30 September 2021 with an update on quarterly business progress . During the quarter, AssetOwl achieved significant growth milestones amid a continued acceleration of activity. The Company's new - generation photo - centric property inspection platform, Pirsee, is designed for residen tial real estate and provides a complete photographic record of the state of a property at the commencement of a property lease period and throughout a tenancy. The Company is please d to provide the following update from CEO Geoff Goldsmith. AssetOwl Ltd ACN: 122 727 342 Level 14, 225 St George’s Terrace, Perth, Western Australia 6000 Telephone: (61) (8) 9424 9320 Facsimile: (61) (8) 9321 5932 www.assetowl.com.au CEO’S UPD ATE Dear Fellow Shareholders, With a backdrop of an increasing number of agencies being licenced onto our Pirsee property inspection platform, I am delighted to deliver the first of my periodic updates to shareholders, which I aim to provide every three to four months. The purpose of these updates is to elaborate upon the Company’s progress and share our plans and priorities for the upcoming quarter . SALES PIPELINE The chart below illustrates the rapid recent growth in customers licensed to our Pirsee platform. At the end of the quarter , AssetOwl had licensed 2 5 agencies to use the Company’s inspection management software, including two Victorian customers. Four of these agencies have become paying customers. The pipeline of potential customers remains strong, and we are confident that the recent healthy take - up will continue through the December quarter and on into CY22 . 2 2 4 12 21 2 14 25 31-Mar-21 30-Jun-21 30-Sep-21 Paying On Trial Licenced Customers (Real Estate Agents) AssetOwl Ltd ACN: 122 727 342 Level 14, 225 St George’s Terrace, Perth, Western Australia 6000 Telephone: (61) (8) 9424 9320 Facsimile: (61) (8) 9321 5932 www.assetowl.com.au With 2 3 West Australian agencies on our platform, the Company’s WA roll - out is making steady progress. The Company estimates that 150,000 properties are professionally managed in WA , and with Pirsee contracted customers collectively having ~ 9,000 properties under management, Pirsee is quickly gaining traction in its home market. The Company’s licensed agencies represent a divers e mix of customers. With an average ~360 properties under management, o ur customers include both boutique agencies and franchisees of leading real estate agent brands. Our WA customers also cover a healthy geographic spread, with a combination of Perth and regional based agents. As announced via ASX release on 1 October 2021 , to complement these real estate signings AssetOwl has also signed 3 o f Perth’s major outsourced inspection agencies onto its Pirsee platform . Outsourced inspection agencies play an important role in WA’s real estate market. These agencies range from individuals operating as sole traders, to larger businesses with a dozen or so employees on the road performing inspections. We understand there a re 4 ‘major’ inspection agencies in Perth: the three agencies which are on our platform use a number of inspection platforms, whilst the fourth typically uses their own in - house platform. Inspection agencies are specialists in their field, and typically have a different workflow to property managers employed by real estate agents. Our product team has worked closely with these agencies to ensure that our p latform meets their exacting standards. This time investment is standing our platform in good stead for two reasons: firstly, it has driven substantial technical improvements in our product, and secondly, these agencies serve as an important channel to market. AssetOwl has received a number of referrals through these agencies and looks forward to deepeni ng these newly - forged relationships . MARKETING ACTIVITIES The major mark e ting event for the quarter was the August rebrand ing of our property inspection platform, inspector360, to ‘ P irsee’ . The Company selected ‘ P irsee’ as it reflects the essence of what we do – namely, to provide the best way for owners, tenants and property managers to ‘see’ their property inspection reports. We have deliberately landed a brand which is distinctive from our competitors, and specifically targets property managers. Our rebranding has also been the catalyst for marketing investment: we now have a new platform website ( www.pirsee.com ), and are starting to build a social media presence. In addition, we will look to ra ise our brand profile via industry events and marketing opportunities – a recent example being our sponsorship of West Coast Property Training’s flagship off - site training day. AssetOwl Ltd ACN: 122 727 342 Level 14, 225 St George’s Terrace, Perth, Western Australia 6000 Telephone: (61) (8) 9424 9320 Facsimile: (61) (8) 9321 5932 www.assetowl.com.au PRODUCT DEVELOPMENT We released a number of Pirsee platform upgrades and new features to the market during the quarter: • New exit workflow. Our new exit workflow addresses one of the main industry shortcomings – a lack of support for exit inspections. Our new workflow enables property managers to rapidly compare th e condition of rooms and items against the condition reported by property managers and tenants during entry inspections. This new functionality is expected to drive significant time savings for agencies, and will serve as an additional point of differen ce for AssetOwl . • Victorian version. The Victorian version of our platform was finalised during the quarter, with our first Victorian trial commencing on 8 September 2021. • Inspection copy function. Prior to this quarter, the copying of inspections performed by outsourced inspections agencies onto their client real estate agent accounts was a time consuming and manual process. This process has been largely automated, enabling AssetOwl to seamlessly t ransfer inspections between inspection agency and real estate agents ’ accounts. This is an important security feature, as it means that the integrity of a real estate agent’s rent roll/records is pr eserved , even if they outsource a portion of their inspections to external parties . OTHER ISSUES Co vid - 19 Covid - 19 continues to have a profound impact on business sentiment and livelihoods across Australia, particularly Victoria and NSW. Whilst AssetOwl is fortunate fr om an operational perspective in that its Victorian product development team typically works from home, there is no doubt that ongoing lockdowns have added a significant amount of stress for our team and their families. Thankfully, it appears that Victoria has eased many of its restrictions. With Pirsee’s unique remote inspection and virtual tour features, our platform is well placed to support the Victorian real estate industry during these challenging times. Whilst lockdowns have slowed our Victorian roll - out, we are looking to build our Victorian presen ce as soon as the opportunity emerges . Whilst Western Australia has been largely unaffected by lockdowns, we remain cognisant of the potential for WA to lock down should the Delta variant breach WA’s borders. To that end, we are actively seeking to grow o ur presence in regional WA, in order to diversify our geographic footprint. AssetOwl Ltd ACN: 122 727 342 Level 14, 225 St George’s Terrace, Perth, Western Australia 6000 Telephone: (61) (8) 9424 9320 Facsimile: (61) (8) 9321 5932 www.assetowl.com.au Data Migration Data migration is a service we are focused on building , as to our knowledge, no current provider is able to offer a comprehensive data migration service. Over th e course of the September quarter , our team has developed an interim capability whereby we upload previous Word inspections onto our Pirsee platform, utilising a semi - automated process. The speed of this will improve over time as automation levels increas e . Given the amount of rent - roll consolidation present in the industry, we believe this service will become an important part of our commercial offering. THE FUTURE The Company has a growing sales pipeline which bodes well for the final quarter of the calendar year. As discussed previously, we will look to expand our geographic coverage in WA, whilst also seeking to grow the number of Victorian agencies on our platform. On the product development side, the team has an ambitious agenda for the quar ter. Major projects include building the next version of our market leading exit function , releasing a major upgrade to our ‘Smart Condition Reports’, building upon our new data migration capability and upgrading platform infrastructure. W e are also worki ng closely with Queensland agencies to build a Queensland version of the product, with an expected release late 2021 /early 2022. T hank you for your continued support through this exciting period. Geoff Goldsmith Chief Executive Officer 29 October 2021 Corporate Statements pursuant to ASX Listing Rule 4.7C For the purposes of ASX Listing Rule 4.7C.1, the Company advises that b usiness activities of the quarter included: - Completion of upgrades to the exit inspection workflow functionality - Cont inued product development towards the Company’s expansion on the East Coast - Launch of the ‘Pirsee’ brand (replacing ‘inspector360’) - Conduct of a number of promotional activities, including event sponsorship and expansion of Pirsee’s social media presence - Continued growth of the Company’s real estate agency pipeline AssetOwl Ltd ACN: 122 727 342 Level 14, 225 St George’s Terrace, Perth, Western Australia 6000 Telephone: (61) (8) 9424 9320 Facsimile: (61) (8) 9321 5932 www.assetowl.com.au Total expenditure in relation to this activity amounted to approximately $ 400,000 , which included salaries and wages and fees paid to contractors and consultants. For the purposes of ASX Listing Rule 4.7C.3, the Company provides the following disclosure with respect to payments to related parties, which are included in the Company’s Appendix 4C: - The Company paid directors fees totalling $ 33,000 to its three directors for their service during the quarter. - The Company paid $ 30,000 to Tribis Pty Ltd under an agreement for the provision of administration and management support services. The C ompany’s Chairman, Mr Simon Trevisan, is the Managing Director of Tribis Pty Ltd, AssetOwl’s largest shareholder. - The Company paid $ 16,500 in favour of AssetOwl Director Mr Geoff Baldwin for consultancy services in connection with growing AssetOwl’s r eal e state a gency pipeline. For the purpose of ASX Listing Rule 15.5, this announcement has been authorised for release by Simon Trevisan, Chairman of AssetOwl Limited. ***ENDS*** For further information, shareholders and media please contact: Sean Meakin Tim Dohrman n Company Secretary Investor and Media Enquirie s +61 8 9424 9320 firstname.lastname@example.org +61 468 420 846 About AssetOwl Limited (ASX: AO1): AssetOwl is an innovative technology company which has developed an enterprise software application, providing real estate owners with one trusted platform for managing propert y inspections . ‘Pirsee’ (formerly ‘inspector360’) is the revolutionary next generation of AssetOwl’s photo - centric inspection management platform, designed to benefit property owners, tenants, agents and managers. It incorporates 360 - degree imagery, video, voice - to - text and hot - spot mapping of floor plans to accurately document property con dition reports, significantly boosting the efficiency of the inspection process . In short, t he Pirsee app provides tenants, property managers and landlords with an exact record of the condition of residential properties . Rule 4.7B A SX Listing Ru les Appendix 4C (1 7 / 07 / 20 ) Page 1 + See chapter 19 of the ASX L isting Rules for defined terms. Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B Name of entity ASSETOWL LIMITED ABN Quarter ended (“current quarter”) 12 122 727 342 30 September 2021 Consolidated statement of cash flows Current quarter $A’000 Year to date ( 3 months) $A’000 1. Cash flows from operating activities 19 19 1.1 Receipts from customers 1.2 Payments for ( 2 67 ) ( 2 67 ) (a) research and development (b) product manufacturing and operating costs ( 16 ) ( 16 ) (c) advertising and marketing ( 55 ) ( 55 ) (d) leas ed assets - - (e) staff cost s ( 141 ) ( 141 ) (f) administration and corporate costs ( 1 36 ) ( 1 36 ) 1.3 Dividends received (see note 3) - - 1.4 Interest received - - 1.5 Interest and other costs of finance paid (1) (1) 1.6 Income taxes paid - - 1.7 Governm en t gran ts and tax incentives - - 1.8 Other (provide details if m aterial) P urchases of Inventory for re - sale (37) (37) 1.9 Net cash from / (used in) operating activities ( 63 4 ) ( 63 4 ) 2. Cash flows from investing activities - - 2.1 Payments to ac quire or f or : (g) entities (h) businesses - - (i) property, p lant and equipment ( 7 ) ( 7 ) (j) investments - - (k) intellectual property - - Appendix 4C Quarter ly cash flow report for ent i ties subject to Listing Rule 4.7B A SX Listing Rules Appendix 4C (1 7 / 07 / 20 ) Pag e 2 + See ch a pter 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 (l) other non - current assets - - 2.2 Proceeds from disposal of: - - (m) entities (n) businesses - - (o) property, plant and equipment - - (p) inves tments - - (q) intellectual property - - (r) 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 ac tivities (7) (7) 3. Cash flows from financing activities - - 3.1 Proceeds from is sues of equity securities (excluding convertible debt securities) 3.2 Proceeds from issue of convertible debt securities - - 3.3 Proceeds from exercise of options - - 3.4 Transa cti on costs related to issues of equity securities or convertible debt securit ies (2) (2) 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 (pr ovide deta ils if material) - - 3.10 Net cash from / (used in) financing activities ( 2 ) ( 2 ) 4. Ne t increase / (decrease) in cash and cash equivalents for the period 1,01 9 1,01 9 4.1 Cash and cash equivalents at beginning of period 4.2 N et cash from / ( used in) o perating activities (item 1.9 above) ( 63 4 ) ( 63 4 ) 4.3 Net cash from / (used in) investing activities (item 2.6 above) ( 7 ) ( 7) Appendix 4C Quarter ly cash flow report for ent i ties subject to Listing Rule 4.7B A SX Listing Rules Appendix 4C (1 7 / 07 / 20 ) Pag e 3 + See ch a pter 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 4.4 Net cash from / (used in) financing activities (item 3.10 above) (2) (2) 4.5 Effect of movement in e xchange rates on cash he ld - - 4.6 Cash and cash equivalents at end of period 37 6 37 6 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 Cu rrent quarter $A’000 Pre vious quarter $A’000 5.1 Bank balances 1 3 9 5.2 Call deposits 363 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) 3 7 6 1,01 9 6 . Paym en ts to related parties of the e ntity and their associates Current quarter $A'000 6 .1 Aggregate amount of pa yments to related parties and their associates included in item 1 80 6 .2 Aggregate amount of payments to related parties and their associates incl ud ed in item 2 - Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must in clude a description of, and an explanation for, such payments . - The Company paid directors fees totalling $33,000 to its three directors for their se rvice during t he quarter . - The Company paid $30,000 to Tribis Pty Ltd under an agreement for the provision of administration and management support services. The Company’s Chairman, Mr Simon Trevisan is the Managing Director of Tribis Pty Ltd, AssetOwl’s la rgest sharehol der. - The C ompan y paid $ 16 , 5 00 in favour of AssetOwl Director Mr Geoff Baldwin for consultanc y services in connection with growing AssetOwl’s Real Estate Agency pipeline. Appendix 4C Quarter ly cash flow report for ent i ties subject to Listing Rule 4.7B A SX Listing Rules Appendix 4C (1 7 / 07 / 20 ) Pag e 4 + See ch a pter 19 of the ASX Listing Rules for defined terms . 7 . Financing facilities Note: the term “facility’ includes all for ms of financing arrangemen ts av ailable to the entity. Add notes as necessary for an understanding of the sou rces 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 Cr edit standby a rrangement s 7 .3 Other (please specify) 7 .4 Total financing facilities 7 .5 Unuse d financ ing facilities available at quarter end 0 7 . 6 Include in the box below a description of each facility above, including the lender, interest r ate , maturity date and w hethe r 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 . Estimat ed cash availabl e for futu re op e rating activities $A’000 8 .1 Net cash from / (used in) operating activities ( i tem 1.9) 634 8 .2 Cash and cash equi valents at quarter end ( i tem 4.6) 376 8 .3 Unused finance facilities available at quarter end ( i tem 7 .5 ) 0 8 .4 Total availab le funding ( i t em 8 .2 + i tem 8 .3) 376 8.5 Estimated quarters of funding available ( i t em 8.4 divided by i tem 8.1) 0. 59 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 th e estimate d qu ar ters 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 le ve l of net opera ting cash flow s for the time being and, if not, why not? Answer: Yes, w hile on a net basis the C ompany expe cts th at net operating ca sh flows will remain comparable with those of the current quarter , in the cur rent quarter the G roup : • inve sted funds to acquire inve ntory (cameras) which are used to support the growing number of trial customers , and which will be available to sell to R ea l E state A gency customers . • paid for services in connection with the re - bra nd of P irsee ( formerly inspector3 60) ; and • paid f or service s such as the annual audit of the Group ’ s consolidated fi nancial statements Appendix 4C Quarter ly cash flow report for ent i ties subject to Listing Rule 4.7B A SX Listing Rules Appendix 4C (1 7 / 07 / 20 ) Pag e 5 + See ch a pter 19 of the ASX Listing Rules for defined terms . 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 t hat they will b e success ful? Answer: Following the end of the quarter, AusIndus try (a depar tment of the Department of Industry , Innovation , Science, Re search and Tertiary Education) registered the R&D inc entive activiti e s of the Company ’ s subsidiary ‘ AssetOwl T echnol ogi es Pty Ltd ’ . Ac cordingly, the Company an ticipates that it will receive an R&D Tax I ncentive , of $4 22,657 from the Australian Taxation Office in November 2021 , calculated on eligible expenditure incurred i n the 2021 financial year. Further, the G roup exp ects receipts from customer s, arising fro m th e roll out of Pirsee , will continue to increase and accordingly, fu rther offset cash outflows. 8.6. 3 Does the entity expect to be able to continue its operat i ons and to meet its business objectives and, if so , on what basis? Answer: Yes, the Com p any has co mmenced rolling out its Pirsee photo - centric property in spection management platform. Funds raised from the capital raising at 8.6(2) will be use d to scal e the deployment capability of Pirsee , fund marketi ng campaigns as the Company enters new st ates, and provide working capital as AssetOwl increases its customer base. Note: where i tem 8. 5 is less than 2 quarters , all of questions 8.6 .1, 8.6.2 and 8.6.3 a b ove must be answered. Compliance statement 1 Thi s statement has been prepar e d in accordan ce with ac counting standards and policies which comply with Listing Rule 19.11A. 2 This statement gives a true and fair view of the matters dis closed. Date: ..... . 29 Oct 2021 ....... Au t horised by : ..... Simon Tr evisan - Chairman .......... . . ( Name of bo dy or offi cer authorising release – see note 4 ) Notes 1. T h is quarterly cash flow report and the accompanying activity report provide a basis for informing the mar k et about the entity’s activities for the past quar ter , how they have been fin a nced and the effect thi s has had on its cash position. An entity that wi shes to disclose additional information over and above the minimum r equired under th e Listing Rules is en c ouraged to do so. 2. If this quarterly cash flow r eport has been prepared in a ccordance wit h Australi an Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quart erly cash flow report has been prepared in accordance with other accoun t ing standards agreed by ASX pursuant to L isting Rul e 19.11A, the corresponding equivalent standard a ppl ies to this report. 3. Dividends received may be classified either as cash flows from operating activi t ies or cash flows from investing activities, depe n ding on the accounting poli c y of the enti ty. 4. If this report has been authorised for release to th e market by your board of directors, you can insert here: “By the board”. If it has been authorised for r e lease to the market by a committee of your board o f 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 c an insert here: “By t h e Disclosure Committee”. Appendix 4C Quarter ly cash flow report for ent i ties subject to Listing Rule 4.7B A SX Listing Rules Appendix 4C (1 7 / 07 / 20 ) Pag e 6 + See ch a pter 19 of the ASX Listing Rules for defined terms . 5. If this report has be en authorised for release t o the market b y your boa rd of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corp orate Governance Prin c iples and Recommendations , the board should have r eceiv ed a declaration from i ts CEO and CF O that, in their opinion, the financial records of the enti ty have been properly maintained , that this report complies with the appropriate acc ounting standards and give s a true and fair view of the cash flows of th e entity , and that the ir op i nion has been formed on the basis of a sound system of risk management a nd internal control which is operating effectively .