An anonymous director reports

KATIPULT RELEASES 2023 Q4 RESULTS

Katipult Technology Corp. has released its financial results for the three-month period ended Dec. 31, 2023.

The following provides a summary of the results for the fourth quarter of 2024. The full results and related management discussion and analysis are available on the Corporation's SEDAR profile (www.sedarplus.ca).

Q4 2023 Summary

Revenue

Revenue consists of subscription revenue which increased by 37% to $646,000 in the fourth quarter of 2023 from $470,000 recognized in the fourth quarter of 2022. Notably, the revenue from enterprise customers grew by 75% in 2023 as compared to 2022.

Gross Profit Percentage (1)

Gross Profit Percentage was 81.8% in the fourth quarter of 2023 compared to 79.5% in the prior year quarter of 2022. The Corporation has been able to consistently maintain a gross profit percentage of close to 80% since 2017.

Adjusted EBITDA (1)

Adjusted EBITDA losses decreased to ($158,000) in the three-month period ended December 31, 2023 from ($299,000) in the three-month period ended December 31, 2022, due to higher revenue and higher margins.

Net loss and comprehensive loss

Net loss and comprehensive loss was ($288,000) in the fourth quarter of 2023 compared to net income and comprehensive income of $163,000 in the fourth quarter of 2022 largely due to change in the non-cash fair value of the Corporation's outstanding 2018 Debentures.

Financial Position

As at December 31, 2023, the Corporation had a cash and cash equivalents balance of $0.6 million, working capital of ($3.8 million), and total assets of $0.9 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. The large decline in working capital is due to the shift of the entire amount of Corporation's first convertible debenture to current liabilities. This maturity date and other terms of the debenture was renegotiated subsequent to year end.

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.