Mr. Geoffrey Rotstein reports

EQ INC. REPORTS SECOND QUARTER FINANCIAL RESULTS

EQ Inc. has released its financial results for the second quarter ended June 30, 2023.

EQ is very pleased to report that revenue for the quarter increased by over 50% from the previous quarter, to over $2.5 million, as clients continued to increase their investments in AI, data and media solutions. EQ's focus on AI and data driven insights is a significant differentiator in the market and continues to generate interest from companies across multiple verticals. The need for unique, opt-in and real time data is an essential component for every company working to integrate AI solutions into their business and EQ is well positioned to take advantage of this market.

Gross margin for the quarter of 42% was a significant improvement over both the previous quarter and from the same period a year ago. The adjusted EBTIDA also improved significantly as the Company continued to focus on its overall cost structure resulting in an adjusted EBITDA loss for the quarter of $0.4 million an improvement of 57% sequentially and over 64% from the same period a year ago.

EQ remains on track to be profitable by the end of 2023. With a continued focus on higher margin recurring revenue products, including its proprietary AI tools and insight models, the Company's investments in proprietary data assets and solutions are showing strong results. The aggregation of geospatial data, the enhancements to its consumer facing app Paymi, and the deep data partnerships with some of the best data companies in the country have positioned EQ extremely well and is generating renewed interest in its key verticals of retail, financial services and automotive.

"Our focus continues to be on growth and profitability" said Geoffrey Rotstein, President and CEO of EQ Works. "Our network of first party data and the work we do to make that data actionable, has grown significantly over the past few years and with AI becoming an essential tool for all businesses, we are extremely excited about our position in the market and the opportunities currently underway. By focusing on data, and products that lead with data, to drive business results we are confident about the targets we've set for ourselves and our organization."

The Company is also pleased to announce that it has also finalized a new credit facility. After the quarter ended, the Company replaced its revolving line of credit facility with an accounts receivable facility under which the Company can borrow up to $4.0 million based on 85% of the eligible accounts receivable aged under 90 days.

In addition, subsequent to quarter end the Company granted 100,000 stock options to an employee of the Company. These stock options are exercisable at CDN $0.95 per stock option and will expire on August 29, 2028. These stock options vest over a period of thirty-six months following the grant date and are governed by the terms and conditions of the Company's stock options plan. Following this grant of stock options, the Company has a total of 2,008,500 stock options outstanding representing approximately 2.9% of the outstanding common shares of the Company.

About EQ Works

EQ Works enables businesses to understand, predict, and influence customer behaviour. Using unique data sets, advanced analytics, machine learning and artificial intelligence, EQ Works creates actionable intelligence for businesses to attract, retain, and grow the customers that matter most. The Company's proprietary SaaS platform mines insights from movement and geospatial data, enabling businesses to close the loop between digital and real-world consumer actions.

We seek Safe Harbor.