Cipherpoint Limited (Cipherpoint or the Company) (ASX: CPT) is pleased to provide the following
quarterly activities report and business update and Appendix 4C.
Quarter Financial Highlights
Financial highlights for the quarter were:
Operating cash costs for the March 2020 quarter were $629K (compared to $995K for theMarch 2020 quarter).
The Company held $330K in cash as at 30 June 2020.
Successfully secured new customer Bank of Finland with an initial licencing contract valued at approximately A$116K
Completed the Share Purchase Plan, raising $500K while being heavily subscribed (which settled in July 2020). Further investor interest was accommodated by way of a placement in the amount of $437K (which closed in July 2020).
New customer win: Tote Board in Singapore
The Company’s June 2020 Appendix 4C is attached. Following the change of the Company’s financial year announced to the ASX on 2 April 2019, the attached Appendix 4C reflects the first quarter’s activities of the Company’s new financial year commencing 1 April 2020.
Activities Report and Business Update
The Company refers to its earlier release to the ASX dated 6 July 2020 titled Marketing Update.
As noted in that release, the Company is beginning to gain momentum in identified target markets. The prior quarter has seen a strong uptick in digital lead generation, despite significant reductions in marketing and advertising spend. Additionally, Bank of Finland joined the Company as an important customer in the European region.
Partner sales in Asia continue to achieve traction with our Singapore-based partners Total eBiz Solutions (TeBS) adding Singaporean Government agency Tote Board to their portfolio of customers making use of Cipherpoint’s sensitive data discovery and protection products, taking a licence valued at A$23,500. Tote Board is a government agency in Singapore that channels gaming revenues in Singapore toward supporting worthy community causes. Tote Board joins Singapore Power as recent
customer wins for the Company in this region this year.
Management continues to see strong growth opportunities in the market for enterprise security products in the face of new and high-profile data breaches.
The business continues to function seamlessly with most staff in Germany, the US and Sydney working remotely. Customer prospecting and support activities by way of teleconferencing or web meeting have quickly gained acceptance by the broader market, meaning our staff can continue to work flexibly and safely.
As set out in the Appendix 4C, expenditure in the quarter was principally comprised of staff costs with some modest expenditure on additional marketing and research and development activities. Payments to related parties and their associates described in the Appendix 4C included usual directors’ fees, salary and wages, superannuation, consultant fees (pursuant to the arrangement disclosed on 20 December 2019).
The Company continues to closely monitor its cash position and expenses are managed by closely as the team works smarter and more flexibly than before.
Funding and SPP
On Friday 26 June 2020, the Company’s SPP closed, strongly oversubscribed. Acceptances totalled $1,264,500, well in excess of the $500,000 the Company was originally seeking, indicating very strong support from existing shareholders. As a result, each accepting shareholder was scaled back, receiving only approximately 40% of their SPP application amount. Shares issued under the SPP were subsequently allotted in early July 2020.
Additionally, following the end of the quarter, the Company raised a further $437,000 by way of placement to new investors. This new investment was settled in early July and will not be reflected in this quarterly report. Management greatly welcomes the renewed support from new and existing