Q4 FY23 Quarterly Report and Appendix 4C: Net Cash Used in Operating Activities Down 56% YoY to Record Low

KEY HIGHLIGHTS

• Net operating expenditure down 56% on PCP to US$1.14m (Q4 FY22: US$2.62m) and down 21% on prior quarter (Q3 FY23: US$1.46m) to lowest since listing in December 2021
• Additional cost cutting initiatives continued post quarter end - includes payroll cuts annualised at over US$0.6m amongst others
• Gross margin increased 12% on PCP (Q4 FY22: 48%) and 2% on last quarter (Q3 FY23: 58%) to 60%
• YoY Gross Profit dollars up 4% to US$1.26m from US$1.21m in Q4 FY22
• Q4 FY23 net sales of US$2.11m – a slight decrease on last quarter due to temporary out-of- stocks on effervescent tablets
• Once-off out of stocks during the period led to estimated unfulfilled orders of ~US$0.6m, which had an estimated negative net sales impact of ~US$0.5m; out of stock actively rectified with multiple shipments received
• Q4 FY23 sales also impacted by continued focus on high-margin revenue streams, sacrificing less profitable and lower margin revenue
• FY23 total unaudited net sales of US$10m – a 9% increase on PCP (FY2022: US$9.09m)
• Marketing costs as a percentage of net revenue reduced to 43% - down from 94% in Q4 FY22
• Transition to new broker, LeBeau Excel, continues to expand addressable market in Canada and underpin 2-3% improvement in customer net margin
• Ongoing work undertaken to launch high growth ready-to-drink (RTD) product range – manufacturing agreements and purchase orders pending
• Continued execution of strategy to reduce expenditure and extend cash reserves through reduced marketing spend following significant investments in CY2022 to build and establish brand awareness in the North American market

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