Company: MOBBW
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001013762-25-003365
Chunk: 127

Company: Mobilicom Ltd
Filing Date: 2025-03-27
Form: 20-F
Item: Item 19
Chunk 127
---
 USD. Significant
asset and equity items on the Company balance sheet are comprised almost solely (greater than 90%) of USD denominated transactions. Furthermore,
most of the Company’s generated cash flows are now invested in USD based cash and cash equivalents. Since such investments are
short-term, cash is readily available for current needs of the group. Thus, the USD is the primary currency from which the Company generates
and accumulates cash.

When considering all relevant facts together,
management concluded that the USD best reflects the currency of the primary economic environment in which the Company currently operates.
Therefore, USD is the functional currency as a result of the change in the most significant economic facts and circumstances from cash
flow and financing indicators. As a result, the Company adopted USD as the functional currency effective January 1, 2024.

The change was accounted for prospectively from
the date of the change in accordance with IAS 21, “ Foreign Currency Matters.” The translated balances of monetary and nonmonetary
assets and liabilities recorded in the Company financial statements as of the end of the prior reporting period became the new accounting
basis for those assets and liabilities in the period of the change. To the extent the entity had monetary assets and liabilities denominated
in the old functional currency, such balances created transactional gains and losses subsequent to the change in functional currency.
The amount recorded in the currency translation adjustment account for prior periods was not reversed upon the change in functional currency.
The exchange rate on the date of the change became the historical rate for subsequent re-measurement of nonmonetary assets and liabilities
into the new functional currency.

The following table summarizes the impact on
both consolidated net loss and other comprehensive income (loss) utilizing USD as the functional currency of the Company as of December
31, 2024, compared to the related impact if the functional currency of the Company would have remained AUD (excluding foreign exchange
from transactions denominated in AUD recorded in the respective period)

                                                                                         USD                AUD                            
                                                                                         as Functional      as Functional                  
                                                                                         Currency           Currency                       
                                                                                         (in USD)           (in USD) (*)                   
                                                                                                            (Unaudited Pro                 
                                                                                                            Forma)                         
  Financial income, net - attributed to foreign translation gain                                            203,593             1,347,672  
  Other comprehensive loss - attributed to foreign currency translation adjustments                         ( 108,302           ( 590,030  

  (*)      The conversion from AUD into USD was made at the exchange            
           rate as