Mr. Todd Hudson reports

AXIS REPORTS Q1 2024 FINANCIAL RESULTS

Axis Auto Finance Inc. has released its financial results for the first quarter of fiscal 2024 ending Sept. 30, 2023.

Q1 2024 Financial Highlights

Total originations of $35.8 million, consisting of $11.2 million in automotive originations and $24.6 million in equipment originations;

Revenues of $10.0 million in the quarter, a 2% decline year-over-year;

Adjusted loss (1) of ($1.5) million as compared to Adjusted loss of ($0.2) million in prior year; and

Net loss of ($2.3) million, down from net loss of ($0.9) million in the first quarter of fiscal 2023.

For the quarter ending September 30, 2023, auto loan originations were $11.2 million, down from $44.5 million in auto loan originations in the first quarter of 2023, as credit and underwriting parameters were further tightened. The $11.2 million in first quarter automotive loan originations were entirely owned and on balance sheet, as Axis did not originate any near prime volumes managed for Westlake Financial Services ("Westlake").

Equipment finance origination volumes in the quarter were $24.6 million, down 17% from $29.6 million in the comparable quarter of 2023. First quarter originations consisted of $10.9 million owned and on balance sheet, with $13.7 million being brokered for third parties or originated for syndication partners.

Revenues for the quarter were $10.0 million, a decrease of 2.0% from the first quarter of prior year. Automotive annualized realized credit loss rate (2) for the quarter was 12.59%, down from 12.90% in the prior quarter, but an increase from 8.19% during the same quarter of the prior year.

Adjusted loss (1) for the quarter was ($1.5) million, or ($0.012) per share, as compared to Adjusted loss of ($0.2) million or ($0.002) per share for the first quarter of 2023. The Company recorded a Net loss for the quarter of ($2.3) million or ($0.019) per share, as compared to net loss of ($0.9) million or ($0.007) per share in the first quarter of 2023.

About Axis Auto Finance

Axis is a financial technology company changing the way Canadians buy and finance used vehicles. Through our direct-to-consumer portal, DriveAxis.ca, customers can choose their next used vehicle, arrange financing, and get the car delivered to their home. In addition, the company continues to grow B2B non-prime auto loan originations by delivering innovative technology solutions and superior service to its Dealer Partner Network. All Axis auto loans report to Equifax, resulting in over 70% of customers seeing a significant improvement of their credit scores. Further information on the Company can be found at https://www.axisfinancegroup.com/investors-press-releases/.

We seek Safe Harbor.