Appendix 4C and Quarterly Activities Report

• Gathid's Annual Recurring Revenue (ARR) increased by 12% in the quarter, reaching $1.35 million, up from $1.2 million at the end of the previous quarter.
• Since the end of FY24, ARR has increased by over 92%, from $0.7 million to $1.35 million.
• The company secured contracts with two new customers, bringing the total to 18.
• One existing customer renewed their annual subscription, maintaining a high renewal rate.
• Sales revenue in Q2 was $390k, up from $272k in Q1 FY25.
• The company's operating activities net cash outflow increased in Q2 due to decreased customer receipts and increased corporate costs related to a dispute.
• Since the end of Q2, a further new customer contract has been added, bringing the ARR to $1.55m at the date of the report.
• Gathid won the Start-up of the Year award in the Australian Information Security Association (AISA) 2024 Cyber Security Awards.
• The company is waiting for the resolution of a dispute over the sale of its physical security business before relisting on the ASX.

Score: 7

Explanation: The document shows strong growth in ARR and customer acquisition, along with industry recognition. However, the increased cash outflow and ongoing dispute create some uncertainty. Overall, the positive aspects outweigh the negatives, resulting in a moderately positive sentiment.

• The company experienced significant growth in ARR, increasing by 12% in the quarter and over 92% since the end of FY24.
• Gathid successfully secured new customer contracts, expanding its customer base.
• The company maintained a high customer renewal rate, indicating customer satisfaction.
• Sales revenue increased from $272k in Q1 to $390k in Q2.
• Gathid won the Start-up of the Year award, demonstrating industry recognition.
• The addition of new customers in new market verticals shows the platform's versatility.

• The company's operating activities net cash outflow increased in Q2.
• Customer receipts decreased in Q2 due to smaller contract values.
• Corporate and administration costs increased significantly in Q2 due to legal advice regarding a dispute.
• There is ongoing uncertainty regarding the final amount due from the sale of the physical security business.

• The ongoing dispute with Bloom creates uncertainty regarding the final amount due from the sale of the physical security business.
• The company is waiting for the resolution of the dispute before relisting on the ASX.
• The audit opinion in respect of the FY24 Financial Statements may require further actions by the ASX before relisting.
• The company's net cash outflow from operating activities increased in Q2, which may require careful management of spending.

The Board is confident that Gathid's SaaS platform is gaining traction in the market and continues to support management in maintaining the growth trajectory of the business. The company is also actively considering all options to maximize value to shareholders through cash, revenue and cost initiatives.

• The Board is satisfied that the progress that is being made in the business during this financial year.
• The Board continues to support management in maintaining the growth trajectory of the business but with spending management in mind in line with the FY25 budget.
• The Directors and management continue to explore all options to ensure a satisfactory resolution for Gathid shareholders.
• The Board continues to actively consider all options available to it in respect of maximizing value to shareholders through cash, revenue and cost initiatives.

Gathid's focus on identity management aligns with the industry's shift towards dynamic, data-driven security solutions. The company's recognition with the AISA Start-up of the Year award highlights its unique approach and potential in the market. The ISO 27001 certification also demonstrates a commitment to security standards, which is crucial in the current cybersecurity landscape.

• Gathid's 92% ARR growth since the end of FY24 is a strong indicator of rapid expansion, which is impressive compared to many SaaS companies in the early stages.
• The company's high customer renewal rate suggests a strong product-market fit and customer satisfaction, which is a key metric for SaaS businesses.
• The increase in sales revenue from $272k to $390k quarter-on-quarter demonstrates positive sales momentum.
• While the company's cash outflow increased, this is not uncommon for growth-focused startups, but it needs to be managed carefully.
• The AISA Start-up of the Year award is a significant achievement, indicating Gathid's potential to become a leader in the identity management space, similar to companies like Okta or Ping Identity in their early stages.

• Shareholders will be encouraged by the strong ARR growth and customer acquisition, but concerned about the ongoing dispute and cash outflow.
• Employees will likely be motivated by the company's growth and industry recognition, but may be concerned about the financial situation.
• Customers will benefit from the company's continued development and support.
• Suppliers may be impacted by the company's cash flow situation.
• Creditors may be concerned about the company's increased cash outflow.

• The company will continue to focus on growing its customer base and ARR.
• The company will work to resolve the dispute over the sale of its physical security business.
• The company will address any issues raised by the ASX regarding the FY24 audit opinion.
• The company will manage spending in line with the FY25 budget.
• The company will continue to develop its software platform.

• 21 September 2023: Completion of the sale of the physical security businesses.
• 30 June 2024: End of FY24, ARR was $0.7m.
• 01/10/2024: Forbes article published.
• 17/10/2024: Multiple publications report Gathid Software earns ISO 27001: 2022 Certification.
• 24/10/2024: Forbes article published.
• 25/10/2024: Forbes article published.
• 02/12/2024: Forbes article published.
• 17/12/2024: Forbes article published.
• 24 January 2025: Date of the 4C release.