Company: MOBBW
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001013762-25-003365
Chunk: 62

Company: Mobilicom Ltd
Filing Date: 2025-03-27
Form: 20-F
Item: Item 5
Chunk 62
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 Shekel (NIS)
and the AUD$.

Fair value gains from financial
liability

Fair value gains from financial
liability were $nil for the year ended December 31, 2023, compared to $2,550,563 for the year ended December 31, 2022. Fair value gains
from financial liability are attributed to revaluation gain/(loss) between measured periods related to the warrants issued in our initial
public offering in the United States in August 2022.

Cost of Goods Sold and Gross Profit

                          For the twelve months ended                                                                               
                          December 31,                                                                                              
                          2023                                            2022                     Increase/Decrease                
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Revenue                 $                                2,193,791      $         1,616,612      $                       577,179  
  Cost of Goods Sold                                        (902,006                 (610,012                             (291,994  
  Gross Profit            $                                1,291,785      $         1,006,600      $                       285,185  

Cost of goods sold remained
at the same pace as the increase in revenue. Gross margin for the year ended December 31, 2023, was 59%, compared to 62% for the year
ended December 31, 2022. The continued high gross margins are mostly explained by our products being high-end IP based technology (beyond
the hardware value), and ongoing effective costs-reduction planning and monitoring for components acquisitions.

Expenses

                                                  For the twelve months ended                                                                                
                                                  December 31,                                                                                               
                                                  2023                                            2022                     Increase/Decrease                 
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Expenses:                                                                                                                                                  
  Sales and Marketing                             $                                2,088,200      $         1,738,918      $                        349,282  
  Research and Development                                                         1,936,802                1,773,245                               163,557  
  General and Administrative                                                       2,256,408                1,869,389                               387,019  
  Finance costs                                                                       14,734                   10,217                                 4,517  
  Fair value losses from financial liability                                         330,208                        -                               330,208  
  Total expenses                                  $