Mr. Gord Breese reports

KATIPULT RELEASES 2023 Q2 RESULTS

Katipult Technology Corp. has released its financial results for the three-month period ended June 30, 2023.

"Our results underscore the company's strength in navigating a challenging period for capital markets. Despite a continuing weak investment climate across North America, we secured a new three year agreement with a new customer, representing the largest contract value in Katipult's history. This signals Katipult's emergence as a market leading deal platform for the capital markets," said Katipult CEO, Gord Breese.

The following provides a summary of the results for the second quarter of 2023. The full results and related management discussion and analysis are available on the Corporation's SEDAR profile (www.sedar.com).

Q2 2023 Summary

Revenue

Revenue consists of subscription revenue which increased by 22.8% to $538,000 in the second quarter of 2023 from $438,000 recognized in the second quarter of 2022. Notably, the revenue from enterprise customers grew by 34.0% in 2023 as compared to 2022.

Gross profit percentage (1)

Gross Profit Percentage was 84.5% in the second quarter of 2023 compared to 77.1% in the prior year quarter of 2022.

Adjusted EBITDA (1)

Adjusted EBITDA losses decreased to ($239,000) in the three-month period ended June 30, 2023 from ($316,000) in the three-month period ended June 30, 2022, due to higher revenue, and higher margins.

Net loss and comprehensive loss

Net loss and comprehensive loss was ($484,000) in the second quarter of 2023 compared to net loss and comprehensive loss of ($502,000) in the second quarter of 2022 due to higher adjusted EBITDA partially offset by a change in the non-cash fair value of the Corporation's outstanding 2018 Debentures.

Financial position

As at June 30, 2023, the Corporation had a cash and cash equivalents balance of $1.3 million, working capital of $0.4 million, and total assets of $1.7 million, compared to cash and cash equivalents balance of $1.4 million, working capital of $0.7 million, and total assets of $1.7 million as at December 31, 2022.

About Katipult

Katipult (www.katipult.com) is a provider of industry leading and award-winning software infrastructure for powering the exchange of capital in equity and debt markets. Our cloud-based platform and solutions digitize investment workflow by eliminating transaction redundancy, strengthening compliance, delighting investors, and accelerating deal flow. Katipult provides unparalleled adaptability for regulatory compliance, asset structure, business model, and localization requirements.

We seek Safe Harbor.