Fertoz : Quarterly 5B Cashflow Report

Rule 5.5

Appendix 5B

Mining exploration entity or oil and gas exploration entity

quarterly cash flow report

Name of entity
Fertoz Limited
ABN	Quarter ended ("current quarter")
86 145 951 622	30 June 2021
Consolidated statement of cash flows	Current quarter	Year to date
	$A'000	(Six months)
		$A'000

1. Cash flows from operating activities

1.1

Receipts from customers

717

1,008

1.2 Payments for

	(a)	exploration & evaluation		(44)	(50)
	(b)	development		-	-
	(c)	production -cost of sales	(see footnote)	(686)	(1,165)
	(d)	staff costs		(19)	(67)
	(e) administration and corporate costs	(378)	(625)
	-	Marketing costs		(190)	(301)
	- Other Administration costs (see note)	(188)	(324)
1.3	Dividends received		-	-
1.4	Interest received		-	-
1.5	Interest and other costs of finance paid	-	-
1.6	Income taxes paid		-	-
1.7	Research and development refunds	-	-
1.8	Other (GST received)		45	37
1.9	Net cash from / (used	in) operating	(365)	(862)
		activities

1.2(e) includes audit fees and share registry fees incurred during this quarter

ASX Listing Rules Appendix 5B (01/12/19)	Page 1
+ See chapter 19 of the ASX Listing Rules for defined terms.

Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report

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

2. Cash flows from investing activities

2.1 Payments to acquire:

(a)	entities	-	-
(b)	tenements	-	-
(c)	property, plant and equipment	-	-
(d)	exploration & evaluation (if capitalised)	-	-
(e)	investments	-	-
(f)	other non-current assets	-	-

2.2 Proceeds from the disposal of:

	(a)	entities	-	-
	(b)	tenements	-	-
	(c)	property, plant and equipment	(211)	(211)
	(d)	investments	-	-
	(e)	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	-	-
	activities

2.2 (c) During the quarter the Company purchased and paid for granulation equipment which it intends to operate in the US.

3. Cash flows from financing activities

3.1 Proceeds from issues of equity securities

	(excluding convertible debt securities)	1,432	1,447
3.2	Proceeds from issue of convertible debt	-	-
	securities
3.3	Proceeds from exercise of options	-	-
3.4	Transaction costs related to issues of equity	(13)	(13)
	securities or convertible debt securities
3.5	Proceeds from borrowings	-	-
3.6	Repayment of borrowings	-	-
3.7	Transaction costs related to loans and	-	-
	borrowings
3.8	Dividends paid	-	-
3.9	Other (provide details if material)	-	-
3.10	Net cash from / (used in) financing	1,419	1,434
	activities

3.1 The Company completed a rights issue through the issuance of 30,395,999 shares (see press release of 6 April 2021) at $0.05, for a total of $1,519K, of which $87K of subscription was subject to approval by the AGM.

ASX Listing Rules Appendix 5B (01/12/19)	Page 2
+ See chapter 19 of the ASX Listing Rules for defined terms.

Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows

4. Net increase / (decrease) in cash and cash equivalents for the period

1. Cash and cash equivalents at beginning of period (See note 1)
2. Net cash from / (used in) operating activities (item 1.9 above)
3. Net cash from / (used in) investing activities (item 2.6 above)
4. Net cash from / (used in) financing activities (item 3.10 above)
5. Effect of movement in exchange rates on cash held
6. Cash and cash equivalents at end of period

Note 1: Excluding cash collateral of $176K.

Current quarter	Year to date
$A'000	(Six months)
	$A'000
674	1,156
(365)	(862)
(211)	(211)
1,419	1,434
(7)	(7)
1,510	1,510

5.	Reconciliation of cash and cash	Current quarter	Previous quarter
	equivalents	$A'000	$A'000
	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	1,517	674
5.2	Call deposits	-	-

5.3 Bank overdrafts

5.4	Other	-	-
5.5	Cash and cash equivalents at end of	1,517	674
	quarter (should equal item 4.6 above)

6.	Payments to related parties of the entity and their	Current quarter
	associates	$A'000
6.1	Aggregate amount of payments to related parties and their	53
	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

Non-Executive Director fees - A$3K

Payment to a director for corporate secretary services - A$14K

Executive Director's remuneration - A$36K

ASX Listing Rules Appendix 5B (01/12/19)	Page 3
+ See chapter 19 of the ASX Listing Rules for defined terms.

Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report

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
1,000	-
-	-
-	-
1,000	-

7.5

Unused financing facilities available at quarter end

1,000

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.

The loan facility is a debtors' factoring facility secured against invoices raised by the Company for the sale of inventory. The interest rate is 12.95%pa.

8.	Estimated cash available for future operating activities	$A'000
8.1	Net cash from / (used in) operating activities (Item 1.9)	(372)
8.2	Capitalised exploration & evaluation (Item 2.1(d))	-
8.3	Total relevant outgoings (Item 8.1 + Item 8.2)	(372)
8.4	Cash and cash equivalents at quarter end (Item 4.6)	1,517
8.5	Unused finance facilities available at quarter end (Item 7.5)	1,000
8.6	Total available funding (Item 8.4 + Item 8.5)	2,517
8.7	Estimated quarters of funding available (Item 8.6 divided by	6.77
	Item 8.3)

8.8 If Item 8.7 is less than 2 quarters, please provide answers to the following questions:

1. Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?

Answer:

2. Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?

Answer:

3. Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

Answer:

ASX Listing Rules Appendix 5B (01/12/19)	Page 4
+ See chapter 19 of the ASX Listing Rules for defined terms.

Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Compliance statement

• This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• This statement gives a true and fair view of the matters disclosed.

Date:

30 July 2021

Authorised by: Justyn Stedwell - Secretary

(Name of body or officer authorising release - see note 4)

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.
2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.
3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.
4. If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board".
   If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee - eg Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".
5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

ASX Listing Rules Appendix 5B (01/12/19)	Page 5
+ See chapter 19 of the ASX Listing Rules for defined terms.