BirdDog Technology : BDT - Business Update & June 2022 Appendix 4C

ASX MEDIA RELEASE

29 July 2022

For personal use only

JUNE 2022 QUARTERLY ACTIVITES REPORT &

APPENDIX 4C

KEY HIGHLIGHTS

• Positive Q4 operating cash flows generated of A$0.2m, excluding A$2.5m in inventory deposits ($0.7m for H2 FY22)
• Strong cash balance of A$23.1 million as at 30 June 2022
• Well-positionedfor FY23 with A$18.8 million as at 30 June 2022 in current inventory and cash deposits providing future production security
• Expansion of core engineering and sales personnel across key regions
• Multiple new products slated for launch in FY23 (including six cameras, three AVs, two monitors), further enhancing the BirdDog product suite and underpinning short and medium-term growth
• Increased engagement with key channel partners in core markets coupled with expanded investment in global sales & marketing strategy
• Investor webinar to be held at 11.00am AEST Friday, 29 July 2022. Registerhere

BirdDog Technology Limited (ASX: BDT) ("BirdDog", "BDT" or the "Company"), the global video technology company enhancing quality, speed, and flexibility of video through a range of solutions, provides an update on the Company's operations for the fourth quarter of FY22, ending 30 June 2022 ("Quarter" or "Q4").

Commenting on the results, BirdDog Co-Founder and CEO Dan Miall said:

"The team has worked incredibly hard to build a platform capable of delivering significant revenue and EBITDA growth into FY23 and beyond, underpinned by products, people and partnerships. Notably, during the June quarter and building upon our hiring of core engineering and sales personnel, we have significantly expanded our expertise, laying the foundations for future growth.

We have further strengthened our market position during the last two quarters with both products and go to market - having activated new distributors and further engaged with current partners globally. We remain confident, continuing to embrace future growth opportunities via our focussed strategy."

POSITIVE CASH FLOW ACHIEVED AMIDST TRANSFORMATIONAL 12 MONTHS

BirdDog delivered FY22 unaudited revenues of A$38.2 million, in line with FY21, with 2% revenue growth recorded in USD terms.

Encouragingly, BirdDog generated positive cash flows from operating activities of A$0.2 million in Q4 FY22 ($0.7 million for H2 FY22) after excluding inventory deposits. This represents a significant turnaround against H1 FY22, which saw cash outflows of $0.8 million.

BirdDog Technology Limited	C/o JM Corporate Services	1
ACN 653 360 448	Level 21, 459 Collins Street, Melbourne, VIC 3000

BirdDog remains well funded to continue to drive revenue and earnings growth, with $18.8 million in current inventory and cash deposits and $23.1 million in cash on balance sheet at the end of the quarter.

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EXPANDED TEAM CAPABLE OF ACHIEVING SIGNIFICANT FUTURE SALES GROWTH

People remain a key foundation of BirdDog's ongoing strategy, with >90% of the team responsible for delivering outcomes across engineering, sales, brand and customer success. During the quarter, the Company continued to position itself to deliver anticipated market share gains, via ongoing hiring and training of key engineering and sales personnel, providing BirdDog the confidence of achieving strong sales deliverability into FY23 and beyond.

BirdDog's strategy to inhouse Research & Development expertise gained pace in the June quarter and ongoing strategic expansion of this will allow BirdDog to achieve a greater return on investment through the simplification and rightsizing of its IP technology stack and product roadmap. This will enable the Company to be even more competitively positioned as it continues to scale globally.

EXPANDING PRODUCT SUITE AND PRUDENT INVENTORY MANAGEMENT

During FY22 BirdDog launched a new series of Robotic pan-tilt-zoom cameras, primarily aimed at growth within Education and entry-level Live Production markets, as well as AV specific converters and monitors plus key workflow Software tools.

The Company continues to manage its supply chain as manufacturing and logistics pressures continue to ease globally, following significantly challenging conditions felt sector wide throughout FY22.

BirdDog's release of multiple new products has been underpinned by careful investment in inventory, as sales traction accelerates the Company is well positioned to deliver in quantity to market.

INCREASED ENGAGEMENT WITH KEY CHANNEL PARTNERS IN CORE MARKETS

A strategic priority of management during H2 FY22 was to expand BirdDog's market presence throughout the United States, United Kingdom, Europe and South-East Asia.

Under the direction of BirdDog's CROO Jamie Ambrose the company has continued to optimise and streamline its sales channels to best support ongoing revenue growth in core and new markets. The results of this process will materialise through FY23 and beyond.

EXPANDED INVESTMENT IN GLOBAL SALES & MARKETING STRATEGY

During Q4, members of BirdDog's executive leadership and sales teams have participated in multiple international trade shows, site visits and customer meetings, continually consolidating and growing brand recognition and distributor relationships.

BirdDog Technology Limited	C/o JM Corporate Services	2
ACN 653 360 448	Level 21, 459 Collins Street, Melbourne, VIC 3000

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Critical industry trade shows, including NAB (Las Vegas, April 2022) and ISE (Barcelona, May 2022) represented a material proportion of BirdDog's Sales & Marketing spend in FY22, with these trade shows representing significant opportunities to showcase existing and new product.

The Company increased its Sales & Marketing spend during the quarter to A$0.7 million (+192% on Q3 FY22) implementing reseller initiatives, brand and product awareness initiatives, which continue to drive further channel pull-through, enhancing sustainable sales into FY23 and beyond.

CASH FLOW

BirdDog generated cash receipts from customers during the quarter of $8.2 million totalling $34.6 million for FY22.

Net cash outflows from operating activities for Q4 FY22 totalled $2.4 million with the majority of outflows relating to inventory deposits of $2.5 million. Excluding these inventory deposits, the Company generated positive operating cashflows for the quarter amounting to $0.1 million. The importance of Inventory Deposits to BirdDog's business is the security of the supply chain which underpins the forward look inventory build.

Included in the cash outflows for the quarter was $5.3 million for product manufacturing and operating costs, consistent with the prior quarter, and $1.4 million for staff costs representing a 23% increase on the prior quarter reflecting the expansion of the team.

The Company had cash available at the end of the quarter of A$23.1m.

QUARTERLY WEBINAR

The Company will hold a webinar with CEO Dan Miall and CFO Barry Calnon today, Friday, 29 July 2022 at 11:00 am AEST, to discuss the June 2022 quarterly results released to the ASX this morning.

Investors can register for the webinar via the following link:

https://us02web.zoom.us/webinar/register/WN_E2ZAMCYtTZWXbFfaJ3nQFQ

Investors can submit questions prior to the webinar to [e-mail] do so via the Q&A.

FY22 RESULTS

BirdDog expects to announce its audited full-year results by 30 August 2022 and will advise details of an investor webinar call prior to this date. A full business update and presentation will also be provided at that time.

BirdDog Technology Limited	C/o JM Corporate Services	3
ACN 653 360 448	Level 21, 459 Collins Street, Melbourne, VIC 3000

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ADDITIONAL INFORMATION

The table below illustrates the expenditure comparison against the Company's 'Use of Proceeds' table in the Prospectus dated 18 November 2021:

Use of Proceeds	Year 1 per Prospectus	Actual amount spent to date,
		since listing
Inventory Build	$11,150,000	$4,615,000
IP Management	$100,000	$74,000
Research & Development	$1,750,000	$789,000
Manufacturing Development	$750,000	$392,000
Regulatory Management	$250,000	$146,000
Marketing Activities	$750,000	$603,000
Working Capital	$3,100,000	$2,032,000
Expenses of the Offer	$1,920,000	$1,928,000
Total	$19,770,000	$10,579,000

In accordance with Listing Rule 4.7C, payments made to related parties and their associates included in item 6.1 of the Appendix 4C was A$140,000 that comprised Director fees, salary and superannuation for the CEO/Managing Director, Independent Chair and Non-executive directors (NEDs).

- Ends -

Authorised for release by the BirdDog Technology Board

BirdDog Technology Limited	C/o JM Corporate Services	4
ACN 653 360 448	Level 21, 459 Collins Street, Melbourne, VIC 3000

For personal use only

For further information please contact:

Barry Calnon	Sam Wells
Chief Financial Officer	Investor/Media Relations
[phone]	[phone]
[e-mail]	[e-mail]

ABOUT BIRDDOG

BirdDog is a global video technology company that enhances the quality, speed and flexibility of video through a range of solutions, augmented with NDI® (Network Device Interface).

This enables video-compatible products to communicate, deliver and receive high-definition video over a computer network in a broadcast-quality,low-latency manner, that is frame accurate and suitable for switching in a live production environment.

BirdDog develops and manufactures a range of connected solutions, including:

• Pan-tilt-zoom(PTZ) Cameras
• Box Cameras
• Converters
• AV Products
• Controllers & Accessories
• Monitors
• NDI® Embedded Smart Display Modules
• Cloud Software Platforms

End users of BirdDog's products cover a wide range of market segments, including Professional Video, Broadcast, Audio Visual and large private and public sector organisations.

For more information on BirdDog, please visit www.birddog.tv

WELCOME TO THE WORLD OF NDI®. WE'VE BEEN EXPECTING YOU.

BirdDog Technology Limited	C/o JM Corporate Services	5
ACN 653 360 448	Level 21, 459 Collins Street, Melbourne, VIC 3000