Mr. James Matthews reports

ARMADA RELEASES Q3 2023 RESULTS

Armada Data Corp.'s interim financial results for the quarter ended Feb. 28, 2023, have now been filed on SEDAR and are available to view on SEDAR at and the company's website.

The company's total revenue decreased 11 per cent in the period ended Feb. 28, 2023, to $543,888 from $613,817 in the same period a year earlier. Comprehensive loss decreased to $(40,372) in this quarter, from $(67,098) as at Feb. 28, 2022.

The company reported comprehensive loss of $(40,372), due to the following:

• The COVID-19 pandemic resulted in the office closing and most staff working from home for the period of March 18 to July 31, 2020, then again on Nov. 16, 2020, to April 4, 2022, at which time the business undertook a hybrid model of returning to the office. Due to an international problem of manufacturing computer chips, automobile production slowed worldwide, with the resulting effect of little new car inventory, which in turn had a detrimental effect on CarCostCanada's revenues. The supply of new vehicles did not come close to meeting demand. The dealerships began to reject CCC member referrals because (a) there was not available inventory to sell, and (b) the dealers perceived that CCC members would not pay full price (MSRP). As a result, many dealer customers cancelled or suspended their partner status with CarCostCanada.
• The insurance division did not receive the anticipated claims to process in this third quarter of fiscal 2023. Inclement weather results in more insurance claims, the country had a relatively mild winter, resulting in fewer claims.

Operations

The insurance services division realized a decrease in revenue in the three months ended Feb. 28, 2023, from $410,125 in 2022 to $374,325 in 2023, or by 9 per cent. The decrease in revenue was the result of fewer claims submitted by insurance companies, because of a mild winter and few major storms.

The CarCostCanada division (combining the former retail, dealer and advertising divisions) revenue was down 23 per cent to $109,222 for the period ended Feb. 28, 2023, from $141,443 for the period ended Feb. 28, 2022. Once new vehicle production and dealership inventories return to pre-COVID levels, management expects this division's revenue to increase.

The information technology division revenue decreased 3 per cent to $60,341 in Q3 2023, from $62,249 in Q3 2022. IT continues to offer technical support and website hosting to customers and is developing new customer relationships on a regular basis, as well as offering new services for sale.

Wages and other office expenses in this third quarter of fiscal 2023 before amortization and interest decreased to $561,556, compared with $653,325, a 14-per-cent decrease over the same quarter last year.

Accounts receivable decreased 9 per cent to $342,323 as at Feb. 28, 2023, compared with $376,654 as at Feb. 28, 2022. Related parties accounts receivable increased from $2,696 to $16,322 in the same periods.

Accounts payable decreased 20 per cent, to $187,895 as at Feb. 28, 2023, from $233,654 a year earlier. Related parties accounts payable decreased to $181 as at Feb. 28, 2023, from $3,944 a year earlier.

The company's deficit as at Feb. 28, 2023, is $(1,576,967), compared with $(1,174,274) the prior year. Earnings per share at Feb. 28, 2023, are nil versus nil per share at Feb. 28, 2022.

About Armada Data Corp.

Armada Data is a Canadian publicly traded information and marketing services company providing accurate and real-time data to institutional and retail customers, through developing, owning and operating automotive pricing-related websites and providing information technology and marketing services to its clients.