Mr. Doug Baird reports

APPULSE CORPORATION - REPORTING 2023 RESULTS

Appulse Corp. has released financial results for the year ended Dec. 31, 2023.

Financial results to Dec. 31, 2023, reflect the Nov. 1, 2023, sale of all of the issued and outstanding shares of its wholly owned and sole operating subsidiary, Centrifuges Unlimited Inc. (CUI), to GEA Canada Inc. Information providing details of the transaction have been published on SEDAR+. The corporation is listed on the TSX Venture Exchange under the symbol APL. The terms of the sale comprised a base price of $10-million, inclusive of an intercompany debt repayment, and subject to certain working capital and net debt adjustments, with the resulting purchase amount payable in cash.

Inclusive of the gain realized upon the sale of CUI, net income for Appulse for the 2023 fiscal year was $1,688,000 (11 cents per share). Consolidated net income for the prior year ended Dec. 31, 2022, was $238,000 (two cents per share). Total shareholders' equity at Dec. 31, 2023, was $8,361,000, comprising total assets of $9,001,000 less liabilities of $640,000. The comparative shareholders' equity at Dec. 31, 2022, was $6,607,000, comprising total assets of $10,386,000 less liabilities of $3,779,000.

The final cash compensation under terms of the sale of CUI was $10,105,000, from which $750,000 was placed under an escrow agreement in support of standard indemnities provided under terms of the sale agreement and $1.1-million was applied to retire outstanding banking obligations of the corporation. The remaining balance, net of certain administrative costs and taxes, has been held in interest yielding investments while management and the board of directors evaluate future investment alternatives with the goal of maximizing value to the shareholders.

We seek Safe Harbor.