HTG – ACTIVITY REPORT – SEPTEMBER QUARTER 2022

KEY HIGHLIGHTS DURING THE QUARTER
• 34.5% higher Monthly Recurring Revenue (MRR) in September 2022 ($346K) compared to June 2022, exceeding the forecast minimum MRR target of $340K, equivalent to Annual Recurring Revenue (ARR) of $4.1M.
• Record quarterly revenue of $887K achieved in the September quarter, representing 66.7% growth year-on-year and 53.8% higher than the June quarter.
• The Group continues to deliver on its Phase 2 strategy of diversifying revenue streams and its customer base with new contract wins announced and a growing opportunity pipeline.
• The Group continues to focus on disciplined spending to reduce the cash burn rate. Net cash outflow for the September quarter was reduced to $2.3M (June Qtr: $2.45M). Additional initiatives are being implemented to further reduce operating costs across the remainder of the financial year.
• $2.2M cash at bank on September 30, 2022, exclusive of $1.0M committed placement proceeds from directors and annual R&D Claim proceeds (est. $0.95M), both expected to be received in November 2022. Customer receipts in the December quarter are expected to increase significantly from record revenue achieved in the September quarter.