Mr. Gali Bar-Ziv reports

EVERYBODY LOVES LANGUAGES REPORTS FINANCIAL RESULTS FOR THE SECOND QUARTER ENDED JUNE 30, 2023

Everybody Loves Languages Corp. has released its financial results for the second quarter ended June 30, 2023. All figures are reported in Canadian dollars and are in accordance with international financial reporting standards unless otherwise noted.

Q2 2023 operational highlights

• On-line English language learning:
  • Conducted two webinars as part of ELL's webinar series with hundreds of attendees.
  • Finalized V.1 of ELL's AcadeMe Junior program:
    • Eight levels, 240-lesson interactive program using lessons built on movie scenes from Disney, Disney Pixar, Fox, Sony and Marvel;
    • Project-based learning, soft CLIL (STEAM-related content) and CEFR;
    • Includes teacher access, reporting and comprehensive lesson plans.
  • Integrated Planet Pop content from ELT Songs on the ELL platform.
    • 348 lessons, songs-based learning content (which generated six million views via ELT Songs);
    • Aligned to Cambridge Young Learners curriculum;
    • Utilized in-player student engagement.
  • Certified 2 learning centres in Ecuador to act as assessment centres for ELL's assessment platform;
  • Entered into a partnership with ELT Songs to establish a joint venture 85 per cent owned by ELL to be the global distributor of Sustainable Development Goals program based on the United Nations 17 SDG mandate.
• Content-based English language learning:
  • Continued to develop content for the latest revision of the PEP books.

• Revenue for the second quarter ended June 30, 2023, totalled $967,747 as compared with $980,664 in Q2 2022.
• Operating and development expenses for the quarter ended June 30, 2023, totalled $585,706 compared with $434,834 in Q2 2022. Included as a reduction of selling, general and administrative expenses are government grants of $52,685 relating to the company's publishing and software projects as compared with $107,721 for the same period in 2022. The company invested $187,279 in product development in the second quarter of the fiscal year compared with the investment of $78,662 in Q2 2022.
• Net profit for the quarter ended June 30, 2023, was $383,837 or one cent earnings per share (basic) based on 35.6 million shares or one cent earning per share (diluted) based on 39 million shares as compared with a net profit of $552,278 for Q2 2022 or two cents earnings per share (basic) based on 35.5 million shares or two cents earnings per share (diluted) based on 36.1 million shares.
• Income before amortization, share-based payments, depreciation, finance charges and taxes was $382,041 in Q2 2023 compared with the income of $545,830 in Q2 2022.

• Revenue for the six-month period ended June 30, 2023, totalled $1,214,794 compared with $1,139,810 for the same period in 2022.
• Operating and development expenses for the six-month period ended June 30, 2023, totalled $1,217,811 as compared with $846,233 for the same period in 2022. Included as a reduction of selling, general and administrative expenses are government grants of $104,481 relating to the company's publishing and software projects. During 2022 same period, the company recorded total grants of $175,097. The company invested $331,973 in product development in 2023 compared with $134,167 in 2022 for the period ended June 30. The development cost is mainly attributed to the development of AcadeMe Junior and Planet Pop products.
• Net loss for the six-month period was $(38,998) as compared with net profit of $218,102 for the same period in 2022.
• Loss before amortization, share-based payments, depreciation, finance charges and taxes was $(3,017), as compared with $293,577 for the same period in 2022.

"Our commitment to improving and developing new products is coming to fruition with the releases of AcadeMe Junior, a Hollywood movie-based language learning and Planet Pop by ELT Songs. These solutions allow us to expand our sales into primary schools in our core markets. These products will be promoted during the coming months towards adoption in the following semesters. We are extremely excited by the prospects of both products as they introduce distinct competitive advantage and growth for the company," said Gali Bar-Ziv, president and chief executive officer of Everybody Loves Languages.

The unaudited condensed interim financial statements for the quarter ended June 30, 2023, and management discussion and analysis are available at SEDAR+.

About Everybody Loves Languages Corp.

Everybody Loves Languages is an edtech language learning and content development company empowering language educators to easily transition from traditional teaching methods to digital learning by integrating education, edutainment and technology.

The company provides on-line and print-based solutions through two distinct business units: Everybody Loves Languages Inc. and Lingo Learning Inc. Everybody Loves Languages is a state-of-the-art technology platform that delivers personalized learning experiences in classrooms and on-line. Its programs provide innovative software-as-a-service-based e-learning solutions, including on-line and off-line content, a learning management system, assessments, real-time reports, speech recognition technology and white-label tools. At the same time, Lingo Learning is the content development arm and co-publishes print-based English language learning materials in China.

Everybody Loves Languages has established successful relationships with key government and industry organizations internationally, with a presence in Latin America and China, and continues to expand its product offerings and extend its market reach.

We seek Safe Harbor.