Quarterly Activities/Appendix 4C Cash Flow Report

• Revenue of $1.415 million, up 74% on prior period
• Solenis Chemical expanded contract from 17 to 124 entities in 54 countries
• Accounts Receivable increased to $4 million, with cash receipts down 30%

Way2VAT, a global fintech leader in automated VAT/GST claim and return solutions, has reported strong growth in Q3 FY24. Revenue increased 74% year-on-year to $1.415 million, bolstered by a record one million total invoices processed in the quarter. The company also expanded its contract with Solenis Chemical, increasing the use of its local and foreign VAT reclaim products and services to a total of 124 entities across 54 countries. This expanded contract is expected to generate annual revenue in the range of $300k to $350k. Way2VAT's enterprise client base grew to 385 clients, including a large multinational NASDAQ-listed technology company. While cash receipts were down 30% on the prior corresponding period due to delays in processing VAT reclaims by certain tax jurisdictions, accounts receivable increased significantly to $4 million. The company has identified cost-saving initiatives to be implemented over the next three months that will reduce costs by a minimum of 10% for FY25. Way2VAT expects to see further growth in revenues and quarterly cash receipts for the December quarter as clients aim to have their accounts payable invoicing data administered before relevant jurisdiction deadlines.

Way2VAT expects to see further growth in revenues and quarterly cash receipts for the December quarter, as much of the client base aim to have their accounts payable invoicing data administered before the relevant jurisdiction deadlines.

Way2VAT is seeing more cross-selling with existing clients, while having a strong pipeline of large new enterprise clients. The cross-selling of more products into the existing client base is now just as important as the number of new clients signed on. The company is also working to streamline and automate tasks and simplify the onboarding process to assist with cross-selling opportunities and increase gross margin across the overall client base.