onlyuse

personal INTERIM REPORT

ForHalf Year Ended 31 December 2020

4.22 10.00
Previous
period Cents
Reporting
period Cents

Total Brain Limited

Appendix 4D

Half-year report

1. Company details

Name of entity:

Total Brain Limited

only

24 094 069 682

ABN:

Reporting period:

For the half-year ended 31 December 2020

Previous period:

For the half-year ended 31 December 2019

2. Results for announcement to the market

$

Revenues from ordinary activities

down

9.1% to

1,999,387

Loss from ordinary activities after tax attributable to the owners of

Total Brain Limited

up

3.5%

to

Lo s for the half-year attributable to the owners of Total Brain Limited

up

3.5%

to

Dividends

useThere were no dividends paid, recommended or declared during the current financial period.

(4,057,756)

(4,057,756)

Comments

personalThe loss for the Group after providing for income tax amounted to $4,057,756 (31 December 2019: $3,920,300).

The Coronavirus (COVID-19) pandemic has not only severely impacted the physical health of people around the world, but also led to an unprecedented increase in stress, fear, and anxiety for the population at large making me tal health an urgent priority to all. In this regard, the Group is mobilised to take advantage of the opportunities that this pandemic has created globally, thus the impact of COVID-19 up to 31 December 2020 has been financially p sitive for the Group, with revenue from the Group's SaaS recurring revenue from the Corporate and Affinity markets increasing by $600,000 relative to the prior reporting period.

Further information on the 'Review of operations' is detailed in the Operating and Financial Review which is part of the Interim Report.

3. Net tangible assets

Net tangible assets per ordinary security

For4. Control gained over entities

Not applicable.

5. Loss of control over entities Not applicable.

Total Brain Limited

Appendix 4D

Half-year report

6. Dividends

Current period

onlyThere were no dividends paid, recommended or declared during the current financial period.

Previous period

There were no dividends paid, recommended or declared during the previous financial period.

7. Dividend reinvestment plans

N t applicable.

use8. Foreign entities

Details of origin of accounting standards used in compiling the report:

Not applicable.

9. Audit qualification or review

personalDetails of audit/review dispute or qualification (if any):

The financial statements were subject to a review by the auditors and the review report is attached as part of the I terim Report. The auditor's report contains a paragraph addressing a material uncertainty related to going concern.

10. Attachments

Details of attachments (if any):

The Interim Report of Total Brain Limited for the half-year ended 31 December 2020 is attached.

11. Signed

As authorised by the Board of Directors

For

Date: 25 February 2021

Signed ___________________________

Dr Evian Gordon

Chairman

Sydney

Total Brain Limited

Contents

31 December 2020

Operating and financial review Directors' report

Auditor's independence declaration onlyFinancial statements cover

Statement of profit or loss and other comprehensive income Statement of financial position

Statement of changes in equity Statement of cash flows Notes to the financial statements Directors' declaration

Independent auditor's review report to the members of Total Brain Limited Back cover

For usepersonal

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8

9

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1
o The average time a user spends with Total Brain's self-caretools grew by 2.5x, and the amount of content consumed increased by 50%, leading to a 91% user satisfaction score.
o Cumulative User Registrations grew to over 1 million users and Brain Profiles increased to 817k, representing 33% and 42% year-over-yeargrowth, respectively.
o Additionally, Total Brain is potentially eligible for $1.4 million in stimulus funding from the U.S. government via the second round of the Paycheck Protection Program. While the exact process and timeline of this program are opaque given the emergency nature of the stimulus, the Company has submitted its application and is awaiting approval and subsequent funding. Upon receipt, these funds would extend the runway of the business to August 2021.
o Based on the current cash balance, receipts collected in January 2021 (including a $1.1 million R&D tax incentive from the Australian government), and additional collections scheduled for the next 3 months, the cash runway for the business is June 2021. This amount excludes any additional billings from the pending IBM transaction or other net new contract wins from hereon.
o Management expects the growth in its Corporate, Affinity, and Clinical markets to continue accelerating materially in the next year, as evident by the year-over-yearARR growth of 28% to $3.5 million (40% in USD), as of 31 December 2020. Including the pending initial IBM transaction, ARR would be $4.1 million, representing 49% growth since December 2019 in AUD (63% in USD).
o The initial roll-outto 25,000 users represents $570k in Annual Recurring Revenue ("ARR") to Total Brain, with an additional $3.5 million available upon population expansion in the intermediate term, for a total of $4.1 million.
● The first IBM transaction with a large government agency for the deployment of the Mental Fitness 360 platform useand GRIT application, continues to progress through the final stages of the contracting process and is expected to
conclude in the very short term based on the latest guidance.
● Despite the significant COVID-relateddelays throughout 2020, TTB has undergone a transition to a SaaS business by replacing one-offsources of revenue earned in the prior reporting period with revenue that is
predominantly recurring in nature.
personal● With cash expenses declining by $0.2 million during the half year, the Company carries significant operating leverage in its business today, which makes future ARR growth achievable without a material increase in expense
base given strategic investments over the past 12 months.
For● During the half year, the Company also achieved significant progress in product development and user adoption:
o On the other hand, COVID has caused significant process set-backswith opportunities already in the pipeline, resulting in 9-monthdelays in sales conversions, including with IBM.
o On the one hand, these large-scaledisruptions have created more awareness of mental health issues which led to a 58% spike in the monthly average incoming prospects at the top of TTB's sales funnel. This was further enabled by the launch of the Mental Health Index: U.S. Worker Edition, which resulted in the engagement of 10+ large employers via direct introductions to their Chief HR Officers in the last 5 months.
● Amidst unprecedented public health and political turmoil globally, the half year ended 31 December 2020 was a onlyperiod of significant growth and transformation for Total Brain:
Total Brain Limited
Operating and financial review 31 December 2020
1. HIGHLIGHTS

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Total Brain Limited published this content on 27 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 August 2021 19:01:03 UTC.