SenterpriSys : Annual Report to Shareholders

SenterpriSYS Limited

ABN 14 146 845 123

Financial Statements

For the Year Ended 30 June 2021

SenterpriSYS Limited

ABN 14 146 845 123

Contents

For the Year Ended 30 June 2021

	Page
Financial Statements
Chairman's Letter	1
Directors' Report	3
Auditor's Independence Declaration under Section 307C of the Corporations Act 2001	12
Directors' Declaration	13
Statement of Profit or Loss and Other Comprehensive Income	14
Statement of Financial Position	15
Statement of Changes in Equity	16
Statement of Cash Flows	17
Summary of Significant Accounting Policies	18
Notes to the Financial Statements	25
Independent Audit Report	38
Additional Shareholder Information	42

SenterpriSYS Limited

ABN 14 146 845 123

Executive Chairman's Letter

For the Year Ended 30 June 2021

The Company recorded a net profit of $288,418 (2020: $142,878). The Company has a positive working capital

position of $212,244 (2020: ($310,055)).

We now confirm that after many false starts, Tamawood Limited is using all of the modules and in FY21 25% of the project's capitalised software development cost has commenced amortisation over 10 years. A further 50% of the capitalised software development cost will commence amortisation in FY22.

A complete overhaul of the website and digital marketing has commenced with a focus on builders in the US and Australian markets.

FY22 Outlook

• The knowledge database software has been given to two companies to beta test. It is anticipated this will be fully operational before December 2021. This software will form the basis for the first version of
  "QANOTIX" (ISO:9001 quality assurance software) which will be available in FY22 and adapted for use by a number of industries.
• Website and digital marketing activity will increase, and the number of enquiries is expected to grow now that BUILDERSYS has been substantially completed. As part of our marketing strategy, we incorporated key search terms in our description of the BUILDERSYS software as follows:

SENTERPRISYS, is an easy to use, JOB COSTING AND PROJECT TRACKING BUILDERSYS integration ERP system that offers improved accuracy, standardisation, and automation. It offers Virtual

ASSISTANT PROCESS, ESTIMATING, CRM, SCHEDULING, CONSTRUCTION AND ACCOUNTING MANAGERS, and delivers seamless efficiency, industry-focused data integration and functionality with the possibility of significantly increasing BACK OFFICE AND SUPERVISORY STAFF PRODUCTIVITY. The system also provides automatic reporting of, user defined, DELAYED individual TASKS lists to the responsible manager. The structure of the login access to key documents on the BUILDERSYS PORTAL ensures necessary documents are signed and delivered as required.

BUILDERSYS is designed to easily import up-to-date material prices and specification data that is available on various websites as well as, in most cases, offer easy INTEGRATION WITH EXISTING ACCOUNTING SOFTWARE. The software can also be easily converted to PRE-EXISTING TERMINOLOGY AND CUSTOM CONSTRUCTION PROCESSES. Work from home and mobile devices are also supported. Payment approvals are user defined and linked to WORK IN PROGRESS REPORTING, prior work inspections and third-party certification. Orders, claims, contract documentation are automatically posted from the document library to, login controlled, SUBCONTRACTOR/SUPPLIER AND CUSTOMER PORTALS.

The solution was developed, tested, and improved over 30 years of continuous use, designed for automated scheduling and rescheduling efficiency, it can standardise the CONTROL SALES PROCESS and initial CUSTOMER COMMUNICATIONS leading to reductions in errors and potentially improved margins. SUBCONTRACTOR RETENTION can be improved through better scheduling, and reduced losses caused by poorly timed and incorrect order deliveries. Time saved by SUPERVISORS may be used for additional inspections resulting in IMPROVED SITE SAFETY, QUALITY, AND CUSTOMER SATISFACTION or reduced indirect costs. Handheld mobile device-based certification, preceding claims, also assists process standardisation.

SenterpriSYS Limited
Annual Report 30 June 2021	1

SenterpriSYS Limited

ABN 14 146 845 123

Executive Chairman's Letter

For the Year Ended 30 June 2021

BUILDERSYS licencing requires no significant upfront investment, nor a fixed term agreement, USD40 per month per active project, in addition to usual service providers fees and SMS service charges needed to enable some of the functions. The extremely low cost compares favourably with the commonly quoted 1% to 2% of total revenue cost for much less effective software solutions. Back-office automation and productivity gains alone should produce substantial return on USD40 per month whereby users invest in fully integrated CRM, Job costing and project tracking software on a per active project basis. Importantly users can start or stop using the system at any time with the number of projects left entirely up to the user and all data remains available notwithstanding a project being inactive.

• Following the recent capital raising, the Company has sufficient working capital to meet its obligations for the next 18 months, in addition, Rainrose Pty Ltd, an entity I control, has signed a letter of support guaranteeing the Company's obligations.

SPS Performance since 2019

	2019	2020	2021
Revenue	$586,368	$709,979	$1,015,169
Employee Wages	$166,383	$243,618	$454,757
Profit After Tax	$6,008	$142,878	$288,418
EPS	0.009¢	0.002¢	0.004¢
Share Price as at 30 June	17¢	7¢	3¢

Lev Mizikovsky

Executive Chairman

Dated: 8 September 2021

SenterpriSYS Limited
Annual Report 30 June 2021	2

SenterpriSYS Limited

ABN 14 146 845 123

Directors' Report

For the Year Ended 30 June 2021

The directors present their report, together with the financial statements of the Company, being SenterpriSYS Limited ("SenterpriSYS" or the "Company") and its controlled entities ("Group"), for the financial year ended 30 June 2021.

Directors

The names of the directors in office at any time during, or since the end of, the year are:

Names	Position
Lev Mizikovsky	Executive Chairman
Rade Dudurovic	Non-executive Director
Laurie Lefcourt	Non-executive Director
Michael Fennell	Managing Director

Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.

Company secretaries

The following person held the position of Company secretary at the end of the financial year:

Geoff Acton ([B.Com, ACA, GAICD])

Narelle Lynch (Cert Gov (PRAC))

Principal activities and significant changes in nature of activities

The principal activity of SenterpriSYS during the financial year was to develop enterprise project management software for small to medium residential house builders and subcontractors ("Software").

There were no significant changes in the nature of the Group's principal activities during the financial year.

Operating results and review of operations for the year

The Group achieved an operating profit after tax of $288,418 for the year ended 30 June 2021 (2020: $142,878). The revenue of $1,015,169 was derived from continuing to provide support and maintenance for the IT systems of Tamawood Limited, AstiVita Limited and Advance NanoTek Limited as well as licensing fees for the use of the Software by Tamawood Limited. There are no contracts in place and this revenue is derived on a month-by-month basis as the services of SenterpriSYS are required by these companies.

While the Group is still in Software development phase, all modules are being utilised by Tamawood Limited, a related entity. SenterpriSYS has commenced marketing the Software and a number of third-party enquiries have been generated.

Review of financial position

The net assets of SenterpriSYS increased from $2,972,721 as at 30 June 2020 to $3,966,565 as at 30 June 2021. Please refer to the Executive Chairman's letter on pages 1-2 for further commentary.

As at 30 June 2021 the Group had working capital of $212,244 (2020: ($310,055)).

SenterpriSYS Limited
Annual Report 30 June 2021	3