Mr. James Matthews reports

ARMADA RELEASES Q1 2024 RESULTS

Armada Data Corp.'s interim financial results for the quarter ended Aug. 31, 2023, have now been filed on SEDAR+ and are available to view on SEDAR+ and the company's website.

The company's total revenue decreased 7 per cent in the period ended Aug. 31, 2023, to $528,215 from $570,118 in the same period a year earlier. Comprehensive loss increased to $(75,057) in this quarter, from $(9,493) as at Aug. 31, 2022.

The company reported comprehensive loss of $(75,057), due to the following:

• During 2022, 2023 and continuing into 2024, the supply of new vehicles for sale at automobile dealerships in Canada continues to be constrained. The continuing lack of supply is affecting buyer interest and activity. The impact of lower-than-usual inventory is pricing at or above full retail list price, or manufacturer's suggested retail price. Many consumers are choosing to withdraw from the market, which results in reducing overall traffic and new user activity on CarCostCanada.com. The lower traffic levels also impairs third party advertising revenues.
• The insurance division has not enjoyed the growth that management anticipated. The number of claims processed was lower than predicted.

Operations

The insurance services division realized a decrease in revenue in the three months ended Aug. 31, 2023, from $394,555 in 2022 to $325,325 in 2023, or by 18 per cent. This decrease was a result of fewer claims processed -- natural disasters and weather events contribute to an increase in claims, and there were no occurrences of these during this period.

The CarCostCanada division (combining the former retail, dealer and advertising divisions) revenue was up 19 per cent to $130,698 for the period ended Aug. 31, 2023, from $110,254 for the period ended Aug. 31, 2022. Once new vehicle production and dealership inventories return to pre-COVID levels, management expects this division's revenues to increase. Also, management is working on new revenue-producing products for this division.

The information technology division revenue increased 11 per cent to $72,192 in Q1 2024, from $65,309 in Q1 2023. 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 first quarter of fiscal 2024 before amortization and interest increased to $588,888 compared with $556,675, a 6-per-cent increase over the same quarter last year.

Accounts receivable increased 1 per cent to $352,345 as at Aug. 31, 2023, compared with $350,389 as at Aug. 31, 2022. Related parties accounts receivable decreased from $10,979 to $341 in the same periods.

Accounts payable increased 28 per cent, to $246,504 as at Aug. 31, 2023, from $192,194 a year earlier. Related parties accounts payable increased to $4,473 as at Aug. 31, 2023, from $1,535 a year earlier.

The company's deficit as at Aug. 31, 2023, is $(1,840,315), compared with $(1,425,196) the prior year. Earnings per share at Aug. 31, 2023, are nil versus nil per share at Aug. 31, 2022.

In July, 2018, the company signed a contract with a mobile app development company for the creation of a new iOS and Android mobile app for the company's e-commerce website Carcostcanada.com. This is presented as an intangible asset at Aug. 31, 2023, of nil, which comprises the total cost of $107,520 less $107,520 accumulated amortization.

Segmented quarterly information

The chief executive officer measures performance by segment based on revenues. Revenues recognized from third party customers, by segment, are presented herein. No internal revenue is included for the IT services segment.

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.