Mr. Avtar Dhaliwal reports

AMBARI BRANDS TO DISCONTINUE US RETAIL OPERATIONS TO FOCUS ON ITS AI BEAUTY APP, SCARLETT

Ambari Brands Inc. will close its United States retail skin care business. This decision comes after careful consideration of market, financial projections and the operational environment in which the company has been producing and selling its products. Despite concerted efforts to build its brand and maintain competitiveness, the company's skin care products business has been increasingly difficult and costly to operate, to the point where the company has decided to cease such operations.

The decision to cease operations in the U.S. retail skin care market was not taken lightly, as the company acknowledges the significant impact this will have on its customers, retail partners and shareholders. The company wishes to reassure its stakeholders that it will retain all product formulations and intellectual property rights associated with its skin care lines, and that the company will still be able to reinitiate sales and operations in the U.S. market at a later date, should market conditions become more favourable.

"While this decision is regrettable, it is a necessary step to ensure the long-term sustainability and growth of the company," affirmed Avtar Dhaliwal, chief executive officer of Ambari. "We are immensely grateful to our customers and retail partners for their unwavering support. Their loyalty has been instrumental in shaping the company's presence in the luxury skin care market. We want to emphasize that while we are ceasing our retail operations in the U.S. for now, we are not abandoning our commitment to innovation and product excellence, which spirit we plan to challenge through the development and commercialization of our Scarlett AI beauty app."

Focus on Scarlett AI beauty app

The company's pro-active termination of its retail operations underscores the company's long-term vision and commitment to its brand legacy. As such, the company has decided to shift its focus to its artificial intelligence-powered beauty app, Scarlett. Scarlett, a beauty software application designed to cater to the evolving needs of skin care enthusiasts worldwide, was recently launched in beta form to allow early adopters and enthusiasts to begin to test the app and provide valuable feedback before Ambari applies to the App Store for launch.

The company invites all shareholders and anyone else who may be interested to try Scarlett in its public beta form, which is available through Apple's TestFlight app.

Scarlett enables a new approach to how individuals manage their skin care routine and makeup selection. Leveraging advanced artificial intelligence algorithms and machine learning capabilities, Scarlett offers personalized skin care recommendations tailored to each user's unique skin type, concerns and preferences. Through a user-friendly interface, individuals can access a wealth of information curated by Ambari, empowering them to make informed decisions about their skin care routine.

In addition to personalized skin care recommendations, Scarlett features virtual makeup trials, allowing users to experiment with different makeup looks in real-time. By leveraging augmented reality technology, users can virtually apply a diverse range of makeup products, from lipsticks and eyeshadows to foundations and blushes, to visualize how each product complements their complexion and style.

Furthermore, Scarlett serves as a virtual skin care adviser, providing users with expert guidance and insights to address their specific skin care concerns. Whether seeking advice on acne management, anti-aging strategies or product recommendations for sensitive skin, users can rely on Scarlett's comprehensive database of skin care information to navigate their skin care journey with confidence.

"We are thrilled to introduce Scarlett to the beauty community," said Mr. Dhaliwal. "Scarlett embodies our commitment to innovation and empowerment, offering users a personalized and immersive beauty experience unlike anything currently available in the market."

The company is actively preparing for the further development and commercial launch of Scarlett, with plans to roll out the application to global audiences in the near future. As the company transitions its focus toward digital innovation, Scarlett represents a cornerstone of its strategic vision for the future of beauty. By embracing technology and personalization, Ambari aims to empower individuals to discover their unique beauty potential, and embrace skin care and makeup through personalized beauty products via multiple sales channels in the app.

As Ambari takes this significant step toward redefining the beauty landscape, current beta users are invited to explore the app's features during this testing phase. The public beta release of Scarlett introduces beauty enthusiasts to the colour matching beauty adviser, augmented reality makeup tester and personalized skin care assistant. These features leverage advanced artificial intelligence and augmented reality to offer personalized recommendations, virtual makeup trials and tailored skin care advice.

Scarlett has three main features

Colour-matching beauty adviser

The combination of colour matching and AI technology guides users in choosing beauty products that match their skin tone and preferences. Users can take a photo of their face using the app, and AI algorithms analyze their skin tone, undertones and complexion. The app then provides personalized recommendations for makeup products, such as foundation, blush, lipstick and eyeshadow shades that best suit the user's skin tone.

Additionally, the application integrates ChatGPT functionality to engage in conversations with users, allowing them to provide more information about their preferences, occasions for makeup wear and specific concerns. The ChatGPT component can offer real-time advice, tips and alternative suggestions based on the user's input. It can also keep users updated on new product releases, trends and personalized beauty tips.

By combining colour matching with ChatGPT, the app provides a comprehensive beauty adviser experience, helping users make informed decisions about their makeup choices while considering their unique skin tone and preferences. The app includes links to on-line stores, enabling users to purchase the recommended products directly.

Augmented reality makeup tester

Scarlett integrates augmented reality (AR) that combines AI, ChatGPT and computer vision to enable users try on makeup products virtually.

Scarlett utilizes the device's camera or allow users to upload a photo to create a virtual makeup testing experience. The AI algorithms analyze the user's facial features, including skin tone, eye shape and lip shape, to accurately simulate the application of different makeup products.

The app provides a wide range of virtual makeup options, including foundation, blush, eyeshadow, lipstick and more. Users can try on different shades, finishes and styles to see how they look on their face in real-time. The AR technology seamlessly blends the virtual makeup with the user's features, creating a realistic representation. The AR makeup tester integrates ChatGPT functionality to engages in conversations with users, understanding their preferences, occasions for makeup wear and desired looks. It can offer personalized makeup recommendations based on the user's input and provide real-time feedback on the virtual makeup application.

To further enhance the user experience, the app can partner with beauty brands, allowing users to purchase the tested makeup products directly through the app. This seamless integration of virtual makeup testing and e-commerce creates a convenient and engaging platform for users to explore and purchase beauty products.

Personalized skin care assistant

Scarlett is also a skin care application that utilizes AI, ChatGPT and picture imaging to provide users with personalized skin care recommendations and assistance. The app offers a range of features to cater to individual skin care needs.

Users start by taking a close-up photo of their face using the app. The AI algorithms then analyze the photo to evaluate the user's skin condition, including concerns such as acne, dryness, aging or sensitivity. Based on this analysis, the app provides personalized skin care product recommendations, including cleansers, moisturizers, serums and treatments that target the user's specific concerns.

The skin care assistant also integrates ChatGPT functionality to engage in conversations with users, allowing them to provide additional information about their skin care routine, lifestyle and preferences. The ChatGPT component offers customized skin care routines, provides explanations about ingredients and suggests alternative products if needed. It also offers tips and guidance on how to properly use the recommended products for optimal results.

To track the effectiveness of the recommended skin care products, the app can encourage users to provide regular updates and photos of their skin. The AI algorithms can analyze the progress over time, giving users insights into the improvements or areas that require further attention. The app can also feature educational content, skin care articles and expert tips to empower users with knowledge about skin care ingredients, routines and best practices. It can also partner with skin care brands to provide direct purchasing options for the recommended products, creating a seamless experience for users to discover, purchase and maintain their personalized skin care routine.

Scarlett's current public beta is an exciting opportunity for users to actively contribute to the app's development. User feedback will play a crucial role in helping the team refine the algorithm and improve the overall functionality of the app before the public release and application to the Apple App Store.

As discussed in the company's news release dated Jan. 24, 2024, following completion of beta testing and any subsequent refinements or upgrades to the app, the company intends to submit Scarlett to Apple's App Store for review.

The company intends to monetize the app through App Store subscriptions to retail purchasers, and the leasing of in-store beauty booths and tablets running the app.

"Ambari's strategic shift towards focusing on the development and commercialization of Scarlett, our innovative beauty software application, while moving away from U.S. retail operations, represents a pivotal moment in our journey," commented Mr. Dhaliwal. "While the decision to cease U.S. retail operations is regrettable, we firmly believe that focusing our resources and expertise on digital innovation, such as Scarlett, will position Ambari for long-term success and shareholder value creation."

Mr. Dhaliwal continued: "By harnessing the power of technology to deliver personalized skin care solutions and virtual beauty experiences, we are aligning Ambari with the evolving preferences and behaviours of consumers in the digital age. This strategic pivot underscores our commitment to innovation, agility and delivering exceptional value to our shareholders."

About Ambari Brands Inc.

Ambari is a company committed to transforming the beauty industry through its AI beauty technology -- Scarlett.

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