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DATADOT TECHNOLOGY LIMITED Interim / Quarterly Report 2006

Jan 30, 2007

64764_rns_2007-01-30_3e3babed-2c1b-4df2-bae2-884a00e0963f.pdf

Interim / Quarterly Report

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Rule 4.7B

Appendix 4C

Quarterly report for entities admitted on the basis of commitments

Introduced 31/3/2000. Amended 30/9/2001, 24/10/2005.

Name of entity

DataDot Technology Ltd

ABN

54 091 908 726

Quarter ended ("current quarter")

31 December 2006

Consolidated statement of cash flows

Current quarter Year to date
Cash flows related to operating activities \$A'000 $(6$ months)
\$A'000
1.1 Receipts from customers 3,020 5,479
1.2 Payments for
(a) staff costs
(798) (2,001)
(b) advertising and marketing (133) (248)
$(c)$ operations & development (57) (93)
(d) leased assets
facilities
(e)
(155) (291)
(f) other working capital (1,680) (3, 116)
1.3 Dividends received
1.4 Interest and other items of a similar nature
received 82 163
1.5 Interest and other costs of finance paid (43) (84)
1.6 Income taxes paid
1.7 Other (provide details if material)
236 (191)
Net operating cash flows

+ See chapter 19 for defined terms.

Current quarter Year to date
\$A'000 $(6$ months)
\$A'000
1.8 Net operating cash flows (carried forward) 236 (191)
Cash flows related to investing activities
1.9 Payment for acquisition of:
(a) businesses (item 5)
(b) equity investments (859) (1, 495)
(c) intellectual property
(d) physical non-current assets
(26) (170)
(e) other non-current assets 52 (147)
1.10 Proceeds from disposal of:
(a) businesses (item 5)
(b) equity investments
(c) intellectual property
(d) physical non-current assets
(e) other non-current assets
1.11 Loans to other entities
1.12 Loans repaid by other entities
1.13 Other (provide details if material)
(833) (1, 812)
Net investing cash flows
1.14 Total operating and investing cash flows (597) (2,003)
Cash flows related to financing activities
1.15 Proceeds from issues of shares, options, etc. 75 7,487
1.16 Proceeds from sale of forfeited shares
1.17 Proceeds from borrowings
Related party loan
1.18 Repayment of borrowings
Related party loans (164) (178)
Finance lease
Other parties
(55)
36
(133)
37
1.19 Dividends paid
1.20 Other (provide details if material)
Net financing cash flows (108) 7,213
Net increase (decrease) in cash held (705) 5,210
1.21 Cash at beginning of quarter/year to date 7,082 1,170
1.22 Exchange rate adjustments to item 1.20 (3) (6)
1.23 Cash at end of quarter 6,374 6,374

+ See chapter 19 for defined terms.

Payments to directors of the entity and associates of the directors

Payments to related entities of the entity and associates of the related entities

Current quarter
\$A'000
1.24 Aggregate amount of payments to the parties included in item 1.2 206
1.25 Aggregate amount of loans to the parties included in item 1.11

1.26 Explanation necessary for an understanding of the transactions

On the $6th$ of December 2006 500,000 share options with an exercise price of 0.15 cents each were exercised.

Positive operating cash flow includes cash received from DataTrace DNA Pty Ltd for Management fees. Under the JV agreement DataDot Technology Ltd is required to contribute these funds back into DataTrace DNA Pty Ltd. The receipt of funds is an operating cash flow and the contribution to DataTrace DNA Pty Ltd is an investing cash flow.

Related Party Loans at item 1.18 relate primarily to loan funds to DataTrace DNA Pty Ltd.

Since the placement of shares on the 14th of July 2006, which raised \$7.6M, the company has applied \$1.642M of funds in aggregate to DataTrace DNA Pty Ltd and the development of the DataDot Automated Applicator Cell in accordance with the company's announcement of that date.

1.24 Relates to Directors' Remuneration

Non-cash financing and investing activities

Details of financing and investing transactions which have had a material effect on consolidated $2.1$ assets and liabilities but did not involve cash flows

Plant and equipment costing \$108,092 and a motor vehicle costing \$38,592 were both acquired under finance leases.

$2.2$ Details of outlays made by other entities to establish or increase their share in businesses in which the reporting entity has an interest

None.

Financing facilities available

Add notes as necessary for an understanding of the position. (See AASB 1026 paragraph 12.2).

Amount available
\$A'000
Amount used
\$A'000
-3.I Loan facilities $\mathbf{M}$
3.2 Credit standby arrangements $\mathbf{u}$

+ See chapter 19 for defined terms.

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as
shown in the consolidated statement of cash flows) to
the related items in the accounts is as follows.
Current quarter
SA'000
Previous quarter
SA'000
4. I Cash on hand and at bank 6,381 7,082
4.2 Deposits at call
4.3 Bank overdraft
4.4 Other (provide details)
Term deposit
Total: cash at end of quarter (item $1.23$ ) 6,381 7,082

Acquisitions and disposals of business entities

Acquisitions
(Item $1.9(a)$ )
Disposals
( Item 1.10(a) )
5.1 Name of entity
5.2 Place of incorporation
or registration
5.3 Consideration for
acquisition or disposal
5.4 Total net assets
5.5 Nature of business

Compliance statement

  • $\mathbbm{1}$ This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act.
  • $\sqrt{2}$ This statement does give a true and fair view of the matters disclosed.

Sign here:

....................................... (Company Secretary)

Date: 31 January 2007

Print name: Graham Loughlin

+ See chapter 19 for defined terms.