Mr. Jim Barrett reports

EDGE TOTAL INTELLIGENCE INC. REPORTS SECOND QUARTER 2023 AND CONSOLIDATED 2023 RESULTS

Edge Total Intelligence Inc. has released its operating and consolidated results for the second quarter 2023 (Q2 2023). Financial information is expressed in United States (U.S.) dollars unless otherwise indicated. The company's related financials and management discussion and analysis for the second quarter 2023 are posted on its profile on SEDAR+ and OTC Markets.

Selected financial details for Q2 2023 and six-month results

• Subscription revenue grew 10 per cent to $894,732 for Q2 2023 from $814,749 the quarter ending June 30, 2022 (Q2 2022), as six-month subscription revenue reached $1,808,864.
• Total revenue decreased 6 per cent to $894,732 for Q2 2023 from $951,219 in Q2 2022 and total revenue decreased 5 per cent for the six months ended as the company shifts professional consulting services to partners and system integrators.
• Operating costs were reduced 21 per cent to $1,161,781 for Q2 2023 versus $1,472,503 in Q2 2022 and operating costs decreased 23 per cent six months ended as the company continues to march towards cash flow positive operations.

"We earned key renewals in Q2 as our pipeline for Digital Twins, Data Mesh and Intelligent Automation capabilities continues to gain traction with government, service providers and AI entrepreneurs," said Jim Barrett, chief executive officer. "Our adoption programs and target use cases announced this first half are increasing growth potential as we landed our largest contract to date with the Veteran's Administration."

Operational highlights for Q2 2023

• On April 25, 2023, the company announced the general availability of its edgeCore platform 4.5 to empower its customers to rapidly compose and deploy secure, action-embedded apps that deliver the right information to the right people on the right device at the speed of relevance.
• On May 9, 2023, the company formed a strategic partnership with Grokstream LLC, a leader in artificial intelligence for IT operations (AIOps). The strategic partnership leverages edgeTI's edgeCore platform to: a) expand integrations with enterprise IT management applications, b) orchestrate automation and workflow engines, and c) drive greater user acceptance through intuitive user experiences. The partnership is expected to increase edgeCore use throughout the Grokstream customer base.
• On June 7, 2023, the company announced that its shares trading on the OTCQB Venture Market under the symbol UNFYF became eligible to be electronically cleared and settled in the United States through the Depository Trust Company (DTC) -- making the company's stock more accessible to U.S. retail and institutional investors.
• On June 12, 2023, the company welcomed a new chief financial officer, Geremy Connor, with broad experience in raising funds and capital markets.
• On June 13, 2023, the company announced its fast path to safe artificial intelligence (AI) and four adoption programs to assist companies, governments, service providers and AI providers to deploy AI quickly and safely.
• On June 15, 2023, Jacques Jarman, EdgeTI's chief revenue officer, delivered a presentation entitled "Digital Twin Solution Driving Increased AI/ML Accuracy and Time to Value" at TechConnect World Innovation 2023 at the request of the show sponsor.
• On June 30, 2023, the company announced its intention to convert the principal amount plus interest accrued owed under its credit facility with Lotus Domaine III LP, a private equity fund and controlling shareholder of the company, to subordinate voting shares of the company. The debt settlement, which remains subject to approval by the TSX Venture Exchange, is anticipated to consist of the issuance of an aggregate of 9,109,541 subordinate voting shares of the company at a deemed price of 90 cents per subordinate voting share for the settlement of $6,185,278.79 (U.S.), being the principal amount plus interest accrued as of June 30, 2023, owed under the credit facility. As of the date hereof, the credit facility and debt settlement remain subject to TSX-V review and acceptance, and no shares have been issued to Lotus.

Subsequent events to the second quarter

• On July 11, 2023, the United States Department of Veterans Affairs selected the company for a five-year contract extension to visualize and empower pharmacy monitoring automation valued at near $4.7-million.
• On Aug. 16, 2023, edgeTI CRO Jacques Jarman delivered a presentation entitled, "Digital Twins - Driven by a Secure COTS Cross Departmental Data Mesh" at the Armed Forces Communications & Electronics Association International's (AFCEA) TechNet Augusta 2023 Conference.
• On Aug. 23, 2023, edgeTI CRO Jacques Jarman delivered a presentation entitled "Energy and Logistics Situational Awareness Powered by a Proven Data Mesh Platform" at the Operational Energy and Logistics Summit in Honolulu, Hi., at the request of the show sponsor.

On Aug. 23, 2023, the shareholders elected three new independent board members at the company's annual general and special meeting of the shareholders.

About Edge Total Intelligence Inc.

Edge Total Intelligence helps customers sustain situational awareness and accelerate data-driven action with its real-time digital operations software, edgeCore. Global enterprises, service providers and governments are more profitable when insight and action are united to deliver fluid experiences through the platform's low-code development capability and compostable experiences. With edgeCore, customers improve their margins and agility by rapidly transforming siloed systems and data across evolving, complex situations in business, technology and cross-domain operations -- helping them achieve the impossible.

We seek Safe Harbor.