Mr. Robert Craig reports

DATABLE TECHNOLOGY CORPORATION ANNOUNCES FINANCIAL RESULTS FOR Q3 2023 AND UPDATE FOR YEAR-TO-DATE 2023

Datable Technology Corp. has released its financial results for the quarter ended Sept. 30, 2023 (Q3 2023). For the three-month and nine-month periods ended Sept. 30, 2023, the company achieved the following milestones:

• Total operating expenses decreased by 48 per cent and 40 per cent for the nine-month and three-month periods, respectively, mainly due to the implementation of cost-cutting and improved operational efficiencies, resulting in a 57-per-cent reduction of net loss to $1,378,833 for the nine-month period and a 53-per-cent reduction of net loss to $494,094 for the three-month period, compared with the same periods in 2022.
• Gross margin as a percentage of sales increased to 49 per cent and 56 per cent for the nine-month and three-month periods, respectively, to compared with 40 per cent and 36 per cent in the same periods in 2022 due to the product mix including a larger percentage of high-margin software-as-a-service products.
• Revenue decreased by 26 per cent to $1,787,294 and by 36 per cent to $431,048 for the nine-month and three-month periods compared with the same periods in 2022, respectively, partially offset by strong increases in gross margin as a percentage of sales such that total gross margin decreased by 9 per cent and less than 1 per cent for the nine-month and three-month periods, respectively, compared with the same periods in 2022. The revenue decreases were partly due to the reduced sales and marketing resources deployed in 2023.

The company is also pleased to provide the following 2023 updates:

• The company made progress on reaching a definitive agreement with LMSG pursuant to the letter of intent signed June 15, 2023 (see press release dated June 16, 2023), such that the deadline of July 31, 2023, was waived by mutual agreement. LMSG has agreed to provide bridge loans to Datable as the parties work to reach a definitive agreement such the transaction can close before Dec. 31, 2023. In addition to finalizing the terms of the agreement and conducting mutual due diligence, LMSG and Datable have been working to integrate Datable's products and services into the LMSG offering, and exploring ways for Datable to monetize Platform , that do not conflict with the business that LMSG is acquiring from Datable.
• Due to the continued cost-cutting and improved operational efficiency, total operating expenses are expected to be reduced by more than 50 per cent for the year ended Dec. 31, 2023, compared with the same period in 2022.
• As of the date of this news release, Datable has agreements, which together with licence agreements signed in prior periods amount to approximately $3.9-million in revenue under contract for 2023 and future periods, of which 60 per cent is expected to be recognized as revenue in 2023. Datable expects gross margin of approximately 50 per cent in 2023, depending on product mix and expected improvements in operational efficiency.

"We have worked with LMSG to restructure our business by reducing costs and focusing on high-margin SaaS licenses such that we are positioned to drive profitable growth under LMSG," said Robert Craig, Datable's chief executive officer. "The final terms of the definitive agreement with LMSG are expected to include a license for Datable use Platform3 in certain sectors that do not conflict with LMSG, so we are exploring ways to monetize our proven enterprise level software platform."

Results of operations

Revenue for the three months ended Sept. 30, 2023, decreased by 36 per cent to $431,048, compared with $678,357 in the same period in 2022 due to a reduction in new annual and long-term licences signed in 2023 and the corresponding reduced sales and marketing activities in line with cost cutting. DTC's Platform3 product is an integrated suite of digital marketing applications sold as SaaS for short-term promotions or on an annual subscription basis with recurring revenues. Revenue in the current year reflected recognition of revenue from the previous year's contracts and new sales of the Platform3 product offering.

Gross profit for the three months ended Sept. 30, 2023, decreased by 1 per cent to $240,744, compared with $243,075 in the same period in 2022. Cost of sales for the three months ended Sept. 30, 2023, decreased by 56 per cent to $190,304, compared with $435,282 in the same period in 2022.

Gross margin as a percentage of revenue for the three months ended Sept. 30, 2023, increased by 20 per cent to 56 per cent, compared with 36 per cent in the same period in 2022. The 20-per-cent increase for the three months ended Sept. 30, 2023, was due to an increased percentage of sales from high-margin software-as-a-service products. Gross margin depends on the product mix for the reporting period. Revenues comprise a combination of higher-margin sales of Platform3, the company's proprietary software-as-a-service product, and reward service combined with some lower-margin third party services.

General and administrative expenses for the three months ended Sept. 30, 2023, decreased by 14 per cent to $283,393, compared with $330,569 in the same period in 2022. The decrease for the three months ended Sept. 30, 2023, was mainly due to a decrease in corporate consultancy fees, professional fees, investor relations and general administration.

Sales and marketing expenses include wages and salaries, consulting fees, travel expenses, and advertising and licences. Sales and marketing expenses for the three months ended Sept. 30, 2023, decreased by 47 per cent to $86,373, compared with $163,706 in the same period in 2022. The decrease for the three months ended Sept. 30, 2023, was mainly due to reduction in staff resources and consultants paid in connection with advertising, sales and marketing activities.

Research and development expenditures for the three months ended Sept. 30, 2023, decreased by 58 per cent to $187,932, compared with $449,341 in the same period in 2022. The decrease in research and development expenses for the three months ended Sept. 30, 2023, was related to the reduction in staff and consulting resources while maintaining the quality enhancement to Platform3. Research and development expense is expected to be significantly lower in 2023 compared with 2022 since the development of the next generation of Platform3 is completed. The enhanced version of Platform3 delivers improved efficiency and reduced implementation cost along with new tools to further monetize first party consumer data customers.

Net and comprehensive loss for the three months ended Sept. 30, 2023, decreased by 53 per cent to $494,094, compared with $1,050,634 in the same period in 2022. The decrease in net loss for the three months ended Sept. 30, 2023, was mainly due to the reduction of sales and marketing expenses, general and administrative expenses, and research and development expenses.

Datable also announces that it has granted 11,275,000 restricted share units (RSUs) to management and board members under the company's share compensation plan, subject to approval by the TSX Venture Exchange.

About Datable Technology Corp.

Datable has developed Platform3 a proprietary consumer life cycle and data management platform that is sold to global consumer brands. Platform3 is delivered as a subscription service (software-as-a-service model) and used by some of the worlds' most valuable consumer brands to access new consumer communities and engage them while collecting, analyzing and managing their first party data. Platform3 incorporates proprietary technology to monetize the consumer data, including demographics and purchasing behaviour, by sending consumers targeted offers by e-mail and text messages.

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