Mr. Hylton Karon reports

IFABRIC CORP MATCHES RECORD REVENUES OF $5.3 MILLION FOR Q3 2023

iFabric Corp. has released its financial results for its third quarter and nine months ended June 30, 2023.

"I am pleased to report that we were able to match 2022's record Q3 revenues despite an overall downturn in global retailer sales. This speaks to the successful expansion of customers and product segments that we have worked hard to increase," said Hylton Karon, president and chief executive officer of iFabric.

"New hires into our product development and marketing teams are currently finalizing new programs for our existing customer base and, at the same time, we are also working on proposals for new major customers, which we expect to close in the near term," continued Mr. Karon.

"Along with our apparel programs in both divisions, I believe that the regulatory and clinical-trial milestones recently achieved will positively impact our opportunities for sales of fabric-treatment technologies. For our customers already incorporating the company's industry-leading fabric-treatment technologies, they can now market 'clinically proven' medical apparel, something we've proudly pioneered at a level never achieved before. We are excited about the revenue and profit potential of these opportunities for the quarters and years to come," concluded Mr. Karon.

Q3 2023 highlights:

• Record Q3 revenues of $5,278,331, maintaining the record revenues achieved in Q3 2022.
• Revenues in the intelligent fabrics division were $2,915,157, a decrease of 5 per cent from $3,075,894 in 2022, that is attributable to seasonal timing differences of deliveries.
• Revenues in the intimate apparel division were $2,357,924, an increase of 11 per cent from $2,136,503 in 2022, that is attributable to increased sales in Canada.
• Gross profit as a percentage of revenue remained unchanged at 40 per cent in both Q3 2023 and 2022.
• Gross profit increased by $51,403 to $2,134,305 in Q3 2023, compared with $2,082,902 in Q3 2022, as a result of increased revenues.
• Selling and administrative costs increased by $147,904 to $1,767,393 in Q3 2023, compared with $1,619,489 in Q3 2022, mainly as a result of increased personnel costs, commissions, royalties, rent, advertising spend and travel expenses that were each incurred to support future revenue growth.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $260,415, compared with adjusted EBITDA of $536,578 in 2022, with the decrease attributable to the higher selling and administrative costs discussed above.
• Net earnings after tax attributable to shareholders was $132,546 (0.4 cent per share basic and diluted), compared with net earnings after tax of $344,805 (1.2 cents per share basic and diluted) in Q3 2022, with the reduction attributable to increased expenses.
• Working capital (excluding a demand loan classified as current, but not requiring repayment in 2022) amounted to $20,358,449 at the end of Q3 2023, compared with $20,423,643 at the end of the previous quarter.
• Cash increased by $1,626,173 to $3,646,017 at the end of Q3 2023, compared with $2,019,844 at the end of the previous quarter, as a result of accounts receivable collected during the quarter.
• The company's bank operating line was unutilized at both June 30, 2023, and at the end of the previous quarter, leaving the full line of $6.75-million available to finance business growth.
• Shareholders equity attributable to common shareholders was $23,416,914 as at June 30, 2023, compared with $23,431,321 at the end of the previous quarter.

Nine-month highlights:

• Total revenues of $16,837,259 for the nine months ended June 30, 2023, compared with $13,710,058 in 2022, representing an increase of $3,127,201, or 23 per cent.
• Gross profit as a percentage of revenue increased to 40 per cent for the nine months ended June 30, 2023, from 38 per cent in the same period of 2022, as a result of lower shipping costs from Asia.
• Adjusted EBITDA of $1,105,885 compared with adjusted EBITDA of $528,053 in 2022, an increase of $577,832.
• The net earnings after tax attributable to iFabric's shareholders during the nine months ended June 30, 2023, was $736,531 (2.4 cents per share basic and diluted) compared with a net loss after tax attributable to shareholders of 158,915 for the nine months ended June 30, 2022 (0.5 cent per share, basic and diluted), representing an increase of $895,446.

Complete financial statements are available on SEDAR+.

About iFabric Corp.

Headquartered in Markham, Ont., iFabric is listed on the Toronto Stock Exchange and currently has 30.3 million shares issued and outstanding. Its two strategic divisions offer a variety of products and services through wholly owned subsidiaries, namely Intelligent Fabric Technologies (North America) Inc. (IFTNA) and Coconut Grove Pads Inc.

IFTNA is focused on development and sale of high-performance sports apparel, medical protective apparel, consumer protective apparel and proprietary treatments that provide intelligent properties to fabrics, foams, plastics and numerous other surfaces, thereby improving the safety and well-being of the user. Such intelligent properties include anti-viral and anti-bacterial characteristics, water-repellence, and UV (ultraviolet) protection, among others.

Coconut Grove, operating as Coconut Grove Intimates, is a designer, manufacturer, distributor, licensor and licensee of ladies' intimate apparel products and accessories.

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