Mr. Jean Charles reports

INFINITII AI REPORTS 17% SALES INCREASE AND CONTROLLED EXPENSES FOR F2024-Q2

Today Infinitii AI Inc. has released its financial highlights for the period ended Dec. 31, 2023. A complete set of Dec. 31, 2023, consolidated financial statements and management's discussion and analysis has been filed at SEDAR+.

Management commentary

"In the second quarter of fiscal year 2024 Infinitii AI increased revenue 17 per cent while holding the line on expenses compared with the same quarter of last year, continuing a trend established in FY2023 of double-digit software licence revenue gains alongside judicious use of cash," said chief executive officer Jean Charles Phaneuf. "A highlight of the quarter was the competitive bid we won with AECOM for the City of Hamilton's wastewater quality management system."

The City of Hamilton sought a qualified proponent to provide a combined sewer overflow (CSO) outfall flow monitoring program for a two-year period at 17 locations and selected Infinitii Flowworks based on its powerful predictive analytics software suite that performs real-time analysis, checks flow monitoring status and sets alarms through a single interface aggregating all types of data from any source. This contract expands the company's reach in the Greater Toronto and Hamilton area.

"More recently we made significant progress with two contracts for our new professional services division," stated Mr. Phaneuf. "Both of these contracts offer the potential to bring in additional recurring revenue and in one instance, exposes us to an exciting new vertical market in AI-driven financial services."

On Jan. 31 the company announced it had signed a professional services and go-to-market agreement with TREKK Design Group LLC to integrate PreView, TREKK's patented sewer and storm surveillance monitoring system with Infinitii Flowworks.

This strategic integration with Infinitii AI will allow TREKK's customers to see PreView images as they are produced in near real time alongside sensor data in the Infinitii Flowworks time-series viewer. The combination of images and sensor data allows users to better understand the impact of storm events on wastewater infrastructure, and the company estimates the agreement will drive a substantial new source of recurring revenues among TREKK's customer base in the United States.

On Feb. 6, the company announced another professional services sales win, as it entered into a new financial services market vertical with Inverite Insights Inc. Inverite is a leading AI-driven software provider that leverages real-time financial data for businesses to better transact with consumers, and contracted with the company to develop machine learning capabilities and new data models based on algorithms that predict probability to repay and/or likelihood to default on loan applicants. The contract encompasses professional services, continuous maintenance, optimization and solution development fees.

Additionally, the Inverite contract licenses Infinitii AI's intellectual property, establishing a new source of recurring revenue outside its traditional smart city and industry infrastructure markets.

Financial highlights and year-over-year results for fiscal Q2 2024

• For the period ended Dec. 31, 2023, the company generated $1,107,548 in revenues compared with $949,472 for the period ended Dec. 31, 2022, a 17-per-cent increase.
• Monthly average revenue from contracted and subscription customers increased by 13 per cent compared with the period ended Dec. 31, 2022.
• Operating expenses of $1,713,274 for the six-month period ended Dec. 31, 2023, declined 1 per cent compared with $1,733,527 in the six-month period ended Dec. 31, 2022.
• The fiscal Q2 2024 operating loss was $354,031, slightly higher than the same quarter in the previous year due to some non-cash expenses.
• During the six-month period ended Dec. 31, 2023, the cash required by the company's operating activities of $625,111 decreased by 36 per cent compared with the same period in the previous year as management continued to make judicious use of cash to focus on capturing revenue opportunities from product and services initiatives aimed at new vertical markets.

About Infinitii AI Inc.

Trusted since 2014 to provide environmental monitoring to many of the largest water infrastructure utilities in the United States and Canada, Infinitii AI has evolved into a machine learning software leader that serves water utility customers in cities and municipalities including Toronto, Seattle, Miami-Dade county, Montreal, Boston, Dallas, region of Peel, York region and Los Angeles county, among others. The company services customers through a trusted partner network that includes engineering and IT (information technology) services companies like AECOM, Core & Main, Kerr Wood Leidal Ltd., K2 Geospatial, and SCG Flowmetrix.

Infinitii AI software performs real-time analysis, checks flow monitoring status, sets alarms through a single interface, accepts all types of data from any source, and offers predictive (what will happen) and prescriptive (what should happen) analytics. Whether it is real-time, historic, wireless, satellite, SCADA (supervisory control and data acquisition) or public data sets, including USGS (U.S. Geological Survey), NOAA (National Oceanic and Atmospheric Administration) and weather forecasts -- it does not matter where the data originate; Infinitii AI transforms raw data into actionable information.

We seek Safe Harbor.