Company: MOBBW
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001013762-25-003365
Chunk: 126

Company: Mobilicom Ltd
Filing Date: 2025-03-27
Form: 20-F
Item: Item 19
Chunk 126
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 comprehensive income were translated using the average exchange rate prevailing during the year.
The resulting translation adjustments were reported as a component of shareholders’ equity under accumulated other comprehensive
income.

Effective as of the Company’s fiscal year
beginning January 1, 2024, the Company’s functional currency became the USD. IAS 21” The Effects of Changes in Foreign Exchange
Rates”, requires a change in functional currency to be reported as of the date it is determined there has been a change, and it
is generally accepted practice that the change is made at the start of the most recent period that approximates the date of the change.
Management determined it would enact this change effective on January 1, 2024. While the change was based on a factual assessment, the
determination of the date of the change required management’s judgement given the change in the primary economic and business environment,
in which the Company operates, have evolved over time. As part of management’s functional currency assessment, changes in economic
facts and circumstances were considered. This included analysis of changes in: management of operations, process, and in the composition
of cash and equity balances. The Company has implemented budgeting in USD, whereas this was previously performed in AUD. The Company’s
cash inflows consist primarily of USD cash balances and less of AUD, as also reflected in the budget. Following the Company’s delisting
from the Australian Securities Exchange in November 2023, the Company focus its capital raise efforts primarily in USD. Assuming current
business operating model stays constant, management believes that the USD cash balances will continue to increase, while AUD cash balances
will continue to produce a net outflow.

F-14

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

Note 2. Significant accounting policies (continued)

Management re-evaluated all indicators established
in IAS 21 to determine the functional currency of the Company. Such indicators include i) cash flow, ii) expense, iii) financing and
iv) intercompany transactions and arrangements. Management determined that the cash flow and financing indicators were most relevant
to the Company operations and its primary economic environment. At the time of the assessment adopted on January 1, 2024, cash flows
generated by the Company that relate to its assets and liabilities now directly affect the Company’s cash flows and are readily
available for remittance to the Company. The majority of cash flow of the Company’s operations is denominated in