Mr. Gord Breese reports

KATIPULT RELEASES 2022 Q4 AND YEAR-TO-DATE RESULTS

Katipult Technology Corp. has released its financial results for the three- and 12-month period ended Dec. 31, 2022.

"Katipult made significant progress in the development and maturation of our product and grew our enterprise customer segment revenue by 30 per cent year over year, however 2022 was a challenging year across North American capital markets with a decline in deal flow compared with 2021," says Katipult chief executive officer Gord Breese. "This reduction in market activity contributed to a slowdown in new business revenue as companies delayed enterprise software projects. As the market recovers, we are optimistic we will experience an uptick in customer growth and continue to play a leadership role in enhancing the efficiency and innovation across the capital markets ecosystem."

This release provides a summary of the results for the fourth quarter of 2022. The full results and related management discussion and analysis are available on the corporation's SEDAR profile.

Q4 and YTD 2022 summary

Revenue

Revenue consists of subscription revenue which increased by 0.6 per cent to $470,000 in the fourth quarter of 2022 from $467,000 recognized in the fourth quarter of 2021. Revenue for the 12-month period ended Dec. 31, 2022, increased by 8.8 per cent to $1.9-million from $1.7-million in the prior year. Notably, the revenue from enterprise customers grew by 30 per cent in 2022 as compared with 2021.

Gross profit percentage

Gross profit percentage was 79.5 per cent in the fourth quarter of 2022 compared with 78.5 per cent in the prior year quarter of 2021. The corporation has been able to consistently maintain a gross profit percentage of close to 80 per cent.

Adjusted EBITDA

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) losses decreased to ($299,000) in the three-month period ended Dec. 31, 2022, from ($435,000) in the three-month period ended Dec. 31, 2021, due to management's focus on prudent expense management and operational efficiency. Adjusted EBITDA was ($1.4-million) for the 12-month period ended Dec. 31, 2022, compared with ($1.6-million) in the prior-year period.

Net loss and comprehensive loss

Net income and comprehensive income was $163,000 in the fourth quarter of 2022 compared with net loss and comprehensive loss of ($461,000) in the fourth quarter of 2021 due to change in the non-cash fair value of the corporation's outstanding 2018 Debentures. The net loss and comprehensive loss was ($1.6-million) and ($2.3-million) for the 12-month period ended Dec. 31, 2022, and 2021, respectively.

Financial position

As at Dec. 31, 2022, the corporation had a cash and cash equivalents balance of $1.4-million, working capital of $700,000 and total assets of $1.7-million, compared with cash and cash equivalents balance of $2.5-million, working capital of $1.8-million, and total assets of $2.6-million as at Dec. 31, 2021.

About Katipult Technology Corp.

Katipult is a provider of industry-leading and award-winning software infrastructure for powering the exchange of capital in equity and debt markets. The company's cloud-based solutions drive efficiency and trust in private capital markets with a digitized investment workflow that eliminates transaction redundancy, strengthens compliance, delights investors and accelerates deal flow. Katipult provides unparalleled adaptability for regulatory compliance, asset structure, business model and localization requirements.

We seek Safe Harbor.