Nuheara : Appendix 4C Quarter Ended 31 March 2022 - Amended

For personal use only

Quarterly Activities Report

24 May 2022

Company Announcements Platform

Australian Securities Exchange

ForExchanget e quarterCentreended 31 March 2022 20 Bridge Street

SYDNEY NSW 2000

By Electronic Lodgement

Dear Sirs

Appendix 4C: Quarter Ended 31 March 2022 - Amended

The Appendix 4C for the quarter ended 31 March 2022 has been updated for the insertion of additional information in section 7.6 regarding R&D funding secured on 6 April 2022 which was noted previously in section 8.6.2 of Appendix 4C. On 9 May 2022, Nuheara received the full amount of this R&D funding ($1,118,052), which is repayable at any time prior to receipt of the R&D Refund or deducted from the R&D Refund which is expected to be up to $2 million for FY22 and is anticipated to be received by the Company in Q3 2022.

Sections 8.6.1 and 8.6.2 have also been revised to explain why the Company does not expect it will continue the current level of net operating cash flows for the time being and to note the R&D funding secured after quarter end on 6 April 2022. There were significant one-off or non-recurring expenses in the March 2022 as outlined in the attached Appendix 4C.

By order of the Board

Susan Park

Company Secretary

190 Aberdeen Street, Northbridge, Western Australia 6003 Australia	P	[phone]	www.nuheara.com
	E	[e-mail]

Appendix 4C - AMENDED

only

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

Name of entity
NUHEARA LIMITED
ABN	Quarter ended ("current quarter")
29 125 167 133	31 March 2022

For personal use

Consolidated statement of cash flows

1. Cash flows from operating activities

1. Receipts from customers
2. Payments for
3. 1. research and development(1)
   2. product manufacturing and operating costs(2)
   3. advertising and marketing(3)
   4. leased assets
   5. staff costs
   6. administration and corporate costs(4)
4. Dividends received (see note 3)
5. Interest received
6. Interest and other costs of finance paid
7. Income taxes paid
8. Government grants and tax incentives
9. Other (provide details if material)(5)
10. Net cash from / (used in) operating activities

Current quarter	Year to date
$A'000	(9 months)
	$A'000
724	3,522
(287)	(1,177)
(1,438)	(3,000)
(690)	(2,638)
-	-
(834)	(2,392)
(1,114)	(2,705)
-	-
1	2
(5)	(25)
-	-
-	1,774
(811)	(778)
(4,454)	(7,417)

190 Aberdeen Street, Northbridge, Western Australia 6003 Australia	P	[phone]	www.nuheara.com
	E	[e-mail]

For personal use only

Consolidated statement of cash flows	Current quarter	Year to date
	$A'000	(9 months)
		$A'000

1. These numbers exclude expenditure directly attributable to development activities that are capitalised as an intangible asset under Australian Accounting Standards. These capitalised development costs are shown as "Payments to Acquire Intellectual Property" under cash flows from investing activities at 2.1(e).
2. Comprising payments for production of IQbuds2 MAX to stock warehouses to provide the Company with the necessary consumer electronics stock buffer as new Hearing Aid products are brought to market next financial year.
3. Advertising and marketing is lower than previous quarters as the Company set up its team in the new US operational centre to capitalise on the growth opportunities that lie ahead in that region, including medical devices and expanding retail presence.
4. Expenditure is higher than last quarter due to timing of creditor payments due to the Christmas/New Year period, and specific one-off or non-recurring payments for the ISO13485:2016 application and external audit, and other annual expenditure particular to the start of the calendar year such as IT subscriptions.
5. International legal fees for protection of the Company's IP (trademarks and patents)

2. Cash flows from investing activities

2.1 Payments to acquire or for:

(a)	entities	-	-
(b)	businesses	-	-
(c)	property, plant and equipment	(2)	(85)
(d)	investments	-	-
(e)	intellectual property(1)	(1,065)	(3,606)
(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	-	-
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	(1,067)	(3,691)
	activities

1. Comprising capitalised development costs of $1,044k (YTD $3.6m) and capitalised patent and trademark applications of $20k (YTD -$33k).

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. Proceeds from exercise of options

1,067	2,688
-	3,000
-	63

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Consolidated statement of cash flows

only	3.4	Transaction costs related to issues of
	equity securities or convertible debt
		securities
	3.5	Proceeds from borrowings(1)
	3.6	Repayment of borrowings(1)
	3.7	Transaction costs related to loans and
		borrowings
use	3.8	Dividends paid
3.9	Other (provide details if material)
3.10	Net cash from / (used in) financing
		activities
	1)	Insurance premium funding
	4.	Net increase / (decrease) in cash and
personal		cash equivalents for the period
4.1	Cash and cash equivalents at beginning of
		period
	4.2	Net cash from / (used in) operating
		activities (item 1.9 above)
	4.3	Net cash from / (used in) investing activities
		(item 2.6 above)
	4.4	Net cash from / (used in) financing activities
		(item 3.10 above)
	4.5	Effect of movement in exchange rates on
		cash held
	4.6	Cash and cash equivalents at end of
		period
	5.	Reconciliation of cash and cash
For		equivalents
	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
	5.2	Call deposits
	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)

Current quarter	Year to date
$A'000	(9 months)
	$A'000
(91)	(211)
100	100
(21)	(21)
-	-
-	-
-	-
1,055	5,619

6,253	7,276
(4,454)	(7,417)
(1,067)	(3,691)
1,055	5,619
-	-
1,787	1,787
Current quarter	Previous quarter
$A'000	$A'000
1,620	6,086
167	167
-	-
-	-
1,787	6,253

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6.	Payments to related parties of the entity and their	Current quarter
	associates	$A'000

only

6.1	Aggregate amount of payments to related parties and their	218
	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.

Directors' fees paid to non-executive Directors and salaries paid to executive Directors

use

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.

1. Loan facilities
2. Credit standby arrangements
3. Other (please specify)
4. Total financing facilities

Total facility	Amount drawn at
amount at quarter	quarter end
end	$A'000
$A'000
2,400	2,400
-	-
-	-
2,400	2,400

For personal

7.5

Unused financing 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.

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