Mr. Simon Selkrig reports

CLOUD DX REPORTS FY2023 RESULTS

Cloud Dx Inc. has released its results for the 12 months ending Dec. 31, 2023.

Key Developments:

• Total Revenue of $1,811,885 represents an increase of 55.4 per cent compared with FY 2022 due to increases in both new contracts signed and growth of existing contracts.
• Gross profit in FY 2023 doubled from $602,896 to $1,282,680 compared with FY 2022 due to increased subscription revenue (up 69 per cent year over year (YOY)), product revenue (up 15.4 per cent YOY) and professional services revenue (up 436.8 per cent YOY).
• Operating expenses were reduced by $1,304,197 or 12.6 per cent in 2023 versus 2022 due to increases in efficiency, and reductions in staff costs.
• Operating loss was reduced by $1,990,085 or 20.4 per cent due to reduced costs and increased profitability.

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Summary of Results:

Revenue:

For the year end Dec. 31, 2023, total reported revenue of $1,811,885 increased by $645,882 or 55.4 per cent compared with the same period in 2022.

Subscription increased by $353,837 or 69 per cent, while Product revenue increased by $93,952 or 15.4 per cent versus FY 2022 due primarily new patient enrollments in Canada and the USA.

Professional services revenue increased by $184,650 or 436.8 per cent due to larger customization, integration and optimization contracts invoiced in the period.

These positive results show that Cloud Dx revenues from new and expanded contracts are accelerating year-over-year.

Government grant funding was $453,543 in FY 2023, an 8.2-per-cent decrease from FY 2022 due to the timing of payments on active grants. Fluctuations in professional services revenue and grant funding amounts from period to period is not unusual.

Expenses:

Annual operating expenses decreased $1,304,197 or 12.6 per cent in the year compared with the same period in 2022, mainly due to a $1,208,550 decrease in salaries, wages & benefits reflecting selective staff reductions.

Cost of inventories increased by $63,778 in 2023 compared with 2022 due to purchase of additional inventories of Connected Health kits.

Please see the Q3 Consolidated Financial Statements and Q3 MD&A for more details.

Customer Statistics FY 2023

The company announced the following contracts or contract extensions in 2023: 7 contracts were executed with Ontario Community Paramedic Services, funded under the Community Paramedicine for Long-Term Care program (CPLTC). 3 contracts were executed with Provincial or Territorial Health Ministries. 4 contracts were executed with Ontario Family Health Teams (FHTs). 4 contracts were executed with Canadian hospitals or academic medical centers. 2 contracts were executed with clinics including a US based clinic in Illinois. Notable customers include Alberta Health Services, Alberta Primary Care Networks, University of Ottawa Heart Institute, and Mohawk Medbuy, the premier hospital procurement agency in Canada.

Subsequent events:

Since January 1, 2024, Cloud Dx has announced 24 contracts and contract extensions valued at over $5.1-million. Notable announcements include new contracts with Health PEI, VHA Home HealthCare, Ottawa Hospital Research Institute, 2 Ontario Community Paramedic Services, and contract renewals with Yukon Health, 5 Ontario Community Paramedic Services, 4 Ontario hospitals, and 7 clinics including an MDVIP Clinic in Illinois.

On March 19, 2024, the company announced that $4.2-million in Debentures converted early at the above-market conversion price of $0.154/share. In addition, investors agreed to a voluntary pooling and escrow of 26 million shares. This early conversion and escrow eliminates $575,000 in annual accrued interest. 14 of 17 Debenture holders in the announced transaction are arms-length.

On April 8, 2024, the company announced a Private Placement offering up to 27,500,000 Units consisting of 1 common share and 1 share purchase warrant, at $0.12/Unit for gross proceeds of $3.3-million. Warrants will have a term of 36 months at an exercise price of $0.18/share. The offering is expected to close an initial tranche in the period between April 29, 2024, and May 5, 2024.

About Cloud Dx

Accelerating digital healthcare, Cloud Dx is on a mission to make healthcare better for everyone. Our Connected Health(TM) remote patient monitoring platform is used by healthcare enterprises and care teams across North America to virtually manage chronic disease, enable aging in place, and deliver hospital-quality post-surgical care in the home. Our partners achieve better healthcare and patient outcomes, reduce the need for hospitalization or re-admission, and reduce healthcare delivery costs through more efficient use of resources. Cloud Dx is the co-winner of the Qualcomm Tricorder XPRIZE, winner of "2022 Top Innovator" from Canadian Business, a 2021 "Edison Award" winner, a Fast Company "World Changing Idea" finalist, and one of "Canada's Ten Most Prominent Telehealth Providers." Cloud Dx is an exclusive partner to Medtronic Canada, Teladoc Health Canada and Sanrai International.

We seek Safe Harbor.