MOQ : Quarterly Activities/Appendix 4C Cash Flow Report - amended

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ASX Announcement

29 July 2022

June 2022 Quarter Update and Appendix 4C

MOQ Limited (MOQ or the Company) (ASX:MOQ) provides an update on its activities for the quarter ending 30 June 2022. MOQ has also released its Appendix 4C today.

Commentary on quarterly cash flow to 30 June 2022

During the quarter, MOQ's net operational cash flow was -$167k. The Company concluded the quarter with cash on hand of $5.228m, and a net cash position of $3.811m. MOQ has a further $1.750m in available funds through its overdraft facility with ANZ Banking Group, which was undrawn at 30 June 2022, leaving MOQ's total available funding of $6.978m.

Payments to related parties included in item 6 of the Appendix 4C relates to the remuneration of directors.

Business Update

MOQ expects to deliver consolidated revenue (unaudited) of:

• $19.83m for Q4 FY22, representing a 3.1% increase compared with Q4 FY21 Despite the growth in revenue, MOQ expects to deliver EBITDA (unaudited) of:
• $141k for Q4 FY22, equating to an EBITDA margin of 0.7%.

MOQ continues to implement it's 'Back on Track' turnaround plan, which includes a number of initiatives to improve the Company's operational controls and project governance. Significant progress has been made in completing most unprofitable professional services customer contracts; however, two of these contracts are still in progress with an expected completion date in 1H23. Overall, the Company's 'Back on Track' turnaround plan has been slower than originally anticipated.

Transaction with Atturra

On 30 June 2022, MOQ announced that it had executed a Scheme Implementation Deed under which it is proposed that Atturra Holdings Pty Ltd (a wholly owned subsidiary of Atturra Limited (ASX: ATA) (Atturra)) will acquire 100% of the fully diluted share capital in MOQ by way of scheme of arrangement.

This announcement has been authorised by the MOQ Limited Board of Directors

For further information contact:

Investor Enquiries:

Peter Ward

Chief Executive Officer

T: [phone]

1. [e-mail]

About MOQ Limited

MOQ is a global award winning, provider of market leading services and solutions, including Consulting, Integration, Managed Services and Solutions around data, applications, and

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infrastructure that enables digital business. Core to our strategy is to build annuity revenue streams through high value managed services and commercialised IP to capitalise on the rapidly growing digital economy.

Our purpose is to enable our customers to achieve more through the smart use of technology as they embrace digital transformation. We pride ourselves on building lifetime relationships with our customers by driving outcomes to get the best results their business needs.

For more information, please visit: https://www.moq.com.au/

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Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Name of entity

MOQ Limited

ABN	Quarter ended ("current quarter")
94 050 240 330	30 June 2022

Consolidated statement of cash flows	Current quarter	Year to date
			$A'000	(12 months)
				$A'000
1.	Cash flows from operating activities
1.1	Receipts from customers	19,689	92,836
1.2	Payments for
	(a)	research and development
	(b)	product manufacturing and operating costs	(7,114)	(43,673)
	(c)	advertising and marketing	(117)	(433)
	(d)	leased assets
	(e)	staff costs	(10,547)	(46,291)
	(f)	administration and corporate costs	(2,068)	(6,744)
1.3	Dividends received (see note 3)
1.4	Interest received		12
1.5	Interest and other costs of finance paid	(7)	(40)
1.6	Income taxes paid		(371)
1.7	Government grants and tax incentives
1.8	Other (provide details if material)	(3)	83
1.9	Net cash from / (used in) operating activities	(167)	(4,621)
2.	Cash flows from investing activities
2.1	Payments to acquire or for:
	(a)	entities		(1,348)
	(b)	businesses
	(c)	property, plant and equipment	(76)	(632)
	(d)	investments
	(e)	intellectual property		(479)
	(f) other non-current assets

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Consolidated statement of cash flows	Current quarter	Year to date
			$A'000	(12 months)
				$A'000
2.2	Proceeds from disposal of:
	(a)	entities		3,861
	(b)	businesses
	(c)	property, plant and equipment
	(d)	investments
	(e)	intellectual property
	(f)	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)	(3)	(229)
2.6	Net cash from / (used in) investing activities	(79)	1,173

3. Cash flows from financing activities

3.1 Proceeds from issues of equity securities

	(excluding convertible debt securities)	5,988
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 securities or convertible debt securities

3.5	Proceeds from borrowings	(141)	1,417
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)	(166)	(696)
3.10	Net cash from / (used in) financing activities	(307)	6,709

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

4.1	Cash and cash equivalents at beginning of period	5,781	1,967
4.2	Net cash from / (used in) operating activities	(167)	(4,621)
	(item 1.9 above)
4.3	Net cash from / (used in) investing activities	(79)	1,173
	(item 2.6 above)
4.4	Net cash from / (used in) financing activities	(307)	6,709
	(item 3.10 above)

4.5 Effect of movement in exchange rates on cash held

4.6

Cash and cash equivalents at end of period

5,228

5,228

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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	5,228	5,781
5.2	Call deposits
5.3	Bank overdrafts
5.4	Other (provide details)
5.5	Cash and cash equivalents at end of	5,228	5,781
	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	71
	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.

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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 (Overdraft Facility)
4. Total financing facilities

Total facility	Amount drawn at
amount at quarter	quarter end
end	$A'000
$A'000
1,417	1,417
1,750	0
3,167	1,417

For

7.5

Unused financing facilities available at quarter end

1,750

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 Group has a Loan facility with ANZ Bank. The facility assisted with the acquisition of Dienst Consulting Pty Ltd. The facility is repayable by $141,667 each calendar quarter with the last payment made after the September 2024 quarter. The interest rate for the loan facility is the BBSY plus 0.5% p.a. and a line fee of 3.25% p.a. of the facility limit payable quarterly.

The Group has an Overdraft Facility with ANZ Bank. The facility is to assist with working capital requirements and is undrawn at 30 June 2022. The facility has an interest rate of BBSY + 4% p.a. for amounts up to the facility limit payable monthly in arrears and a line fee of 3.25% p.a. of the facility limit payable quarterly in arrears.

Facilities are secured by a General Security Agreement over property of the Security Provider.