Mr. Hylton Karon reports

IFABRIC CORP REPORTS RECORD ANNUAL REVENUES FOR ITS FINANCIAL PERIOD ENDED SEPTEMBER 30, 2023

iFabric Corp. today released its results for its fourth quarter and 12 months ended Sept. 30, 2023.

The results for the quarter and 12 months ended Sept. 30, 2023, are unaudited. As a result of the change in the company's financial year end to Dec. 31, the company will now report audited results for the 15 months ended Dec. 31, 2023.

"Two thousand twenty-three delivered strong results, despite the realignment of deliveries to retailers due to current economic conditions. The encouraging growth with new customers and programs, speaks to the dynamic products we supply across a diverse customer base," stated Hylton Karon, president and chief executive officer of iFabric. "With the production cycle timing required to design, manufacture, ship and distribute, our current orderbook outlook sets up 2024 to outperform even these historic numbers," concluded Mr. Karon.

12 months ended Sept. 30, 2023, highlights:

• Revenues increased by 10 per cent or $1,899,753 to $21,642,761 in 2023 compared with $19,743,008 in 2022. This represents record annual revenues for iFabric.
• Intelligent fabric division revenue increased by 11 per cent or $1,354,542 to $14,013,449 in 2023 from $12,658,907 in 2022, attributable to new swimwear programs in Canada.
• For the intimate apparel division, revenue increased by 9 per cent or $614,795 to $7,591,416 in 2023 from $6,976,621 in 2022, as a result of increased sales in Canada.
• Gross profit of $8,520,563 (39-per-cent margin) for the year ended Sept. 30, 2023, compared $7,026,276 (36-per-cent margin) in 2022, representing an increase in gross profit dollars of $1,494,287 or 21 per cent, The increase in gross margins is primarily attributable to reduction in freight costs from Asia, as well as selling price increases with respect to a number of products.
• Selling, general and administrative costs increased by 18 per cent or $1,147,868 to $7,588,386 in 2023 from $6,440,518 in 2022. Increased personnel costs, commissions, royalties, rent, advertising and travel costs incurred to support revenue growth, current and future, were the main reasons for the increase.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $982,064 in 2023 compared with adjusted EBITDA of $445,861, an increase of $536,203.
• Net earnings attributable to iFabric's shareholders in 2023, amounted to $596,986 (two cents per share, basic and diluted) compared with net loss attributable to shareholders of $454,998 in 2022 (1.5 cent sper share, basic and diluted), representing an increase in net earnings of $1,051,984.
• Working capital (excluding a demand term loan classified as current under IFRS (international financial reporting standards), but not requiring repayment in 2024) amounted to $20,325,278 in 2023 compared with $19,843,615 at Sept. 30, 2022, representing an increase of $481,663.
• Shareholders' equity increased by $689,408 to $23,442,518 in 2023 from $22,753,110 in 2022.
• Long-term debt was $535,120 in 2023 compared with $614,660 in 2022.
• Cash increased by $1,949,255 to $2,893,980 as at Sept. 30, 2023, from $944,725 as at Sept. 30, 2022.
• The company's bank credit line of $6.75-million was unutilized at both Sept. 30, 2023, and 2022, leaving the full line of $6.75-million available to finance future growth.

Q4 ended Sept. 30, 2023, highlights:

• Revenue decreased by 20 per cent 02 $1,227,448 to $4,805,502 in Q4 2023 compared with $6,032,950 in Q4 2022, mainly due to timing differences in deliveries. Goods that were originally scheduled to be shipped in Q4 will now be shipped in Q5.
• Gross margins improved to 37 per cent in Q4 2023, compared with 31 per cent in Q4 2022, because of lower freight costs and product repricing. Gross profit dollars decreased by 4 per cent or $82,245 in Q4 2023 compared with 2022.
• Negative adjusted EBITDA for Q4 2023 amounted to $123,821 compared with negative adjusted EBITDA of $82,192 in Q4 2022.

Complete financial statements are available on SEDAR+ and the company's website.

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.

We seek Safe Harbor.