Company: MOBBW
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001013762-25-003365
Chunk: 128

Company: Mobilicom Ltd
Filing Date: 2025-03-27
Form: 20-F
Item: Item 19
Chunk 128
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 of December 31, 2024, on which AUD 1.00 equalled USD 0.621.  
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Foreign currency translation

Starting January 1, 2024, the financial statements
are presented in US dollars, which is the Company ’s presentation currency and functional currency. The functional currency of the
Company’s subsidiary, Mobilicom Ltd (“ Mobilicom Israel”), is NIS.

Foreign currency transactions

Foreign currency transactions are translated
into US dollars using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from
the settlement of such transactions and from the translation at financial year-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in profit or loss. Non-monetary items are converted at the rate of exchange used to
convert the related consolidated statements of financial position items, i. e., at the time of the transaction.

F-15

  Mobilicom Limited                               
  Notes to the consolidated financial statements  
  December 31, 2024                               

Note 2. Significant accounting policies (continued)

Foreign operations

The assets and liabilities of foreign operations
are translated into US dollars using the exchange rates at the reporting date. The revenues and expenses of foreign operations are translated
into US dollars using the average exchange rates, which approximate the rates at the dates of the transactions, for the period. All resulting
foreign exchange differences are recognised in other comprehensive income through the foreign currency reserve in equity.

The foreign currency reserve is recognised in profit or loss when
the foreign operation or net investment is disposed of.

Cash and cash equivalents

Cash and cash equivalents include cash on hand, deposits held at call
with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

Restricted cash represents deposits with banks
which are used mainly as a security for guarantees provided against facilities lease agreement and line of use for credit cards.

Research and development

Expenditure during the research phase of a project is recognised as
an expense when incurred.

Development costs are capitalised only when technical
feasibility studies identify that the project will develop an intangible asset that will be completed and available for use or sale,
that there are adequate technical, financial and other resources to complete the development, that it will deliver future economic benefits
and these benefits can