Universal Biosensors : March 2022 Quarterly Activity Report and Appendix 4C

1 Corporate Avenue Rowville Victoria 3178 Australia

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29 April 2022

Universal Biosensors, Inc.

March 2022 Quarterly Activity Report

Universal Biosensors, Inc. (ASX:UBI) (UBI) has today released its cash flow report (ASX Appendix 4C) and quarterly activity report for the quarter ended 31 March 2022 (Q1 2022).

UBI is developing and commercializing a range of biosensors in oenology (wine industry), human health including oncology, coagulation, COVID-19, women's health and fertility, non-human and environmental testing using our patented platform technology and hand-held point of use devices.

The primary focus of UBI's activities during the first quarter of 2022 were:

• • The global launch of Sentia's Malic Acid product;

• • The sale of Sentia's wine testing Free Sulphur Dioxide and Malic Acid products;

• • The commencement of a Sentia direct sales force in the USA;

• • The finalization of the development of Sentia's Glucose product;

• • Further development of Sentia wine testing products;

• • The establishment of a distribution centre in the USA to support the global expansion of the Company's wine testing product sales. This is in addition to the distribution centres we have in Australia and Europe;

• • The commencement of an Xprecia Prime direct sales force in Europe;

• • The continuing development of aptamer sensing technology on our hand-held platform device;

• • The progression of clinical studies across 3 sites in the USA for Xprecia Prime;

• • The progression of an Investigational Clinical Study (300 patient/+) for our Tn Antigen biosensor used for the detection, staging and monitoring of cancer;

• • Gaining regulatory approval to sell Xprecia Prime in 32 countries in Europe;

• • The continued development of our diabetes detection and monitoring biosensor product in animals; and

• • Increased investment in the UBI's product development activities. $1.7 million was invested into the development of the veterinarian blood glucose product and $0.2m was spent on our FDA clinical trial for Xprecia Prime (both non-recurring expenditures once completed). Other R&D increases relate to our investment in our oncology, fertility and COVID biosensors.

During Q2, UBI intends to raise approximately A$20 million via a fully underwritten 1 for 6.85 non-renounceable pro rata entitlement offer of CHESS depositary interests over new UBI ordinary shares (New CDIs) to eligible retail and institutional securityholders at an offer price of A$0.77 per New CDI. In addition, UBI has undertaken a placement of New CDIs to certain institutional investors to raise A$6 million.

FINANCIAL UPDATE

Net cash (cash and cash equivalents less short and long-term debt) as at 31 March 2022 was $12.4 million.

Highlights between prior comparable periods are as follows:

• • Receipts from customers during the three months ended 31 March 2022 increased by 203%

• • Total services revenue for the three months ended 31 March 2022 increased by 15%

• • Total products revenue for the three months ended 31 March 2022 increased by 10%

1 Corporate Avenue Rowville Victoria 3178 Australia

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The primary reasons for the increase in receipts from customers included:

• • the Company benefited from new revenue streams following the successful global launch of our Sentia Free Sulphur Dioxide wine testing product in 2021 and of another Sentia wine testing product, Malic Acid Test, in 2022;

• • the contract liability (deferred revenue) relating to the Company's obligation to transfer Xprecia Stride strips to Siemens which was received in 2019 was fully utilised in Q2 of 2021; and

• • our revenue from coagulation testing increased by 15% because of new contracts won and an expanded customer base. This growth is despite HRL losing revenue hours due to relocation to their new facility.

Development expenditure increased during the year ended 31 March 2022 because the Company invested in multiple development projects (detailed above).

Payments of $71,000 as disclosed in item 6 of the attached Appendix 4C comprised of the non-executive directors' fees, allowances and superannuation. We appointed a new Non-Executive Director, Mr Graham McLean, in March 2022.

For further information, please contact:

John Sharman

Chief Executive Officer [phone]

Announcement authorised by the Board of Directors of Universal Biosensors, Inc.

Rule 4.7B
(a)	entities
(b)	businesses
(c)	property, plant and equipment	(273)
(d)	investments
(e)	intellectual property
(f)	other non-current assets
Page 1

Name of entity

Appendix 4C

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

UNIVERSAL BIOSENSORS, INC.

ABN

67 950 836 446

Quarter ended ("current quarter")

31 March 2022

Consolidated statement of cash flows	Current quarter $A'000	Year to date (3 months) $A'000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) research and development (b) product manufacturing and operating costs (c) advertising and marketing (d) leased assets (e) staff costs (f) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Government grants and tax incentives 1.8 Other (provide details if material) 1.9 Net cash from / (used in) operating activities	1,021 (1,000) (1,246) (277) (109) (2,681) (1,004) 7 (6) 39	1,021 (1,000) (1,246) (277) (109) (2,681) (1,004) 7 (6) 39
(5,256)	(5,256)

2. 2.1

Cash flows from investing activities Payments to acquire or for:

(273)

Consolidated statement of cash flows	Current quarter $A'000	Year to date (3 months) $A'000
2.2 Proceeds from disposal of: (a) entities (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) 2.6 Net cash from / (used in) investing activities
(273)	(273)

3. Cash flows from financing activities 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 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 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 activities	4 1,002 (446)	4 1,002 (446)
560	560

4.

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

4.1

Cash and cash equivalents at beginning of period

4.2

Net cash from / (used in) operating activities (item 1.9 above)

4.3

Net cash from / (used in) investing activities (item 2.6 above)

18,099 (5,256)

18,099 (5,256)

(273)

(273)

Consolidated statement of cash flows	Current quarter $A'000	Year to date (3 months) $A'000
4.4 4.5 4.6	Net cash from / (used in) financing activities (item 3.10 above) Effect of movement in exchange rates on cash held Cash and cash equivalents at end of period	560 (116)	560 (116)
13,014	13,014

5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A'000	Previous quarter $A'000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) The Company maintains restricted cash which includes tenant security deposits, credit card security deposits and a letter of credit issued in favour of a Customer. 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	10,784 2,230	15,318 2,781
13,014	18,099

6. Payments to related parties of the entity and their associates	Current quarter $A'000
6.1 Aggregate amount of payments to related parties and their associates included in item 1 71 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.

Item 6.1 includes non-executive directors' fees and salaries, allowances and superannuation