Mr. Peter Londa reports

TANTALUS SYSTEMS HOLDING INC. REPORTS FINANCIAL RESULTS FOR Q3 OF 2023

Tantalus Systems Holding Inc. has released its financial and operating results for the quarter ended Sept. 30, 2023 (Q3). Currency amounts are in United States dollars unless otherwise stated.

Financial highlights for Q3:

• Revenue: Generated $10.1-million ($13.6-million (Canadian)), representing 12-per-cent growth over the prior-year period. Revenue in Q3 from the utility software applications and services segment (software and services) represented 37 per cent of total revenue in the quarter, equaling the highest percentage contribution in the company's history.
• Coupled with its first and second quarter revenue results, the company set a new milestone for revenue generated during the first nine months of a year at $31.8-million ($42.8-million (Canadian)).
• Annual recurring revenue (ARR): Grew to approximately $11.0-million ($14.9-million (Canadian)), representing 21-per-cent growth over the prior-year period. Recurring revenue recognized in the quarter represented approximately 25 per cent of total Q3 revenue.
• Gross profit margin: Delivered 53 per cent for the quarter, which was on par with the prior-year period.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization): Delivered $100,000 ($100,000 (Canadian)) of positive adjusted EBITDA as compared with negative $400,000 (negative $500,000 (Canadian)) for the prior-year period. The company delivered positive adjusted EBITDA while continuing its significant investment in the commercialization of the TRUSense Gateway, a turnkey solution designed to accelerate utilities' modernization of the electric distribution grid.
• Total assets: Ended the quarter with $36.4-million ($49.3-million (Canadian)) as compared with $37.4-million ($50.7-million (Canadian)) as of Dec. 31, 2022.
• Sales orders: The company converted an additional $5.0-million ($6.7-million (Canadian)) in orders from its sales pipeline and increased its user community to 285 utilities through Q3. The company set a new milestone for orders converted during the first nine months of the year by securing $27.6-million ($37.1-million (Canadian)) in orders through Sept. 30.

"Q3 represented another strong quarter for Tantalus," said Peter Londa, president and chief executive officer of Tantalus. "We are pleased to maintain our trajectory of reverting back to positive adjusted EBITDA while also investing in the commercialization of the TRUSense Gateway and the Congruitive software capabilities. We continue to believe these investments in R&D represent a substantial near- and long-term opportunity for the company."

The company will hold a conference call and webcast to discuss the financial results on Wednesday, Nov. 8, 2023, at 11 a.m. Eastern Time.

Conference call

Participant dial-in (toll-free):   1-844-854-4410

Participant international dial-in:  1-412-317-5791

Replay information

A conference call and webcast replay will be available until Nov. 15, 2023. To access the conference call replay, please see details herein.

United States toll-free:  1-877-344-7529

International toll:   1-412-317-0088

Canada toll-free:  1-855-669-9658

Replay access code:  2048739

About Tantalus Systems Holding Inc.

Tantalus is a smart grid technology company that transforms aging one-way grids into future-proofed multidirectional grids that improve the efficiency, reliability and sustainability of utilities and the communities they serve. Its solutions are purpose-built to allow utilities to restore power quickly after major disruptions, adapt to rapidly shifting consumer expectations and population shifts, deliver innovative solutions based on the adoption of distributed energy resources, and evolve their grid infrastructure at their own pace without needless cost or complexity. All this gives Tantalus's user community the flexibility they need to get the most value from existing infrastructure investments while planning for future requirements.

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