Mr. K.L. Wong reports

HELLO PAL ANNOUNCES RECORD ANNUAL REVENUES FOR 2022 YEAR END AND RESTATES 2021 YEAR END FINANCIAL INFORMATION

Hello Pal International Inc. has filed its audited annual financial statements and management's discussion and analysis for the period ended Feb. 28, 2022, on SEDAR.

Highlights:

• Total revenue increased to $38,395,840 in 2022 (composed of $36,471,718 for livestreaming and net revenue of $1,924,122 for cryptocurrency) being an 80-per-cent increase from $21,290,903 in 2021.
• Gross profit increased to $4,124,692 in 2022 (composed of $1,924,122 for cryptocurrency mining and $2,200,570 for livestreaming) being a 77.5-per-cent increase from $2,323,184 in 2021.
• Hello Pal transitioned all cryptocurrency mining operations to Tier 1 jurisdictions (United States and Australia).
• Hello Pal had a strong registered user base of seven million.

"We thank our shareholders and other stakeholders for their patience in the finalization and filing of our audited financial statements for fiscal 2022. Our 80-per-cent increase in revenues over 2021 is a testament to the extensive use of the Hello Pal ecosystem across Asia and the Middle East. We are diligently working on our outstanding management prepared interim financial statements and are targeting to file them as soon as possible."

Livestreaming operations

In fiscal 2022, the company's livestreaming services generated revenues of $36,471,718 or 95 per cent of total revenue of the company. Although all revenues were generated from livestreaming, the company's ecosystem that features Hello Pal moments, user matching and one-on-one video chats has led to a continual stream of users.

Crypto mining operations

The company's cryptocurrency mining operations generated 2022 revenues of $1,924,122, which included downtime for moving operations from China to United States and Australia. Currently, the cryptocurrency mining rigs are operating at an average of 75-per-cent capacity and averaging an efficiency of 100.25 per cent, as well as mining Dogecoin and Litecoin.

Restatement on financial information for 2021 year-end

The company announces that it has restated its audited annual financial statements for the year ended 2021. The company determined that there were deficiencies in historical financial information in relation to the company's livestreaming business, where the revenue and direct costs were understated. These adjustments also resulted in an increase in accounts receivable and accounts payable and accrued liabilities. This was mainly due to the deficiencies in the records of international revenue in China, Middle East and Southeast Asia. The key adjustments to the previously filed financial information include:

• Increase in revenue from $15,962,345 to $21,290,903;
• Increase in gross profit from $1,558,616 to $2,323,184;
• Increase in net loss from $3,599,916 to $4,910,205.

Further details of the restatement are set forth in the amended and restated audited financial statements and amended management's discussion and analysis for the year ended Feb. 28, 2021, filed on SEDAR.

About the Hello Pal platform

The Hello Pal platform is a proprietary suite of mobile applications built on a user-friendly messaging interface that focuses on social interaction, language learning and travel. Hello Pal has been designed from the ground up to be easy to use and enables users the freedom to speak in their own language regardless of the other person's language they are speaking to. Hello Pal's overriding mission is to bring the world closer together through social interaction, language learning and travel. By creating a platform where it is easy to instantly interact with others around the world and giving them the tools to communicate with each other in a joyful and fun way, the company hopes to do its part (however small) in fostering understanding and tolerance between all citizens of the world.

We seek Safe Harbor.