Mr. Buck Marshall reports

MISSION READY REPORTS 2022 FINANCIAL RESULTS

Mission Ready Solutions Inc. has released its 2022 audited consolidated financial statements for the year ended Dec. 31, 2022.

The following are highlights for fiscal 2022:

• Gross revenues: $5.52-million;
• Gross margin: 17 per cent;
• Net loss: $22.5-million;
• Decrease in operating expenses: 29 per cent;
• Decrease in total liabilities: 42 per cent.

A copy of the audited consolidated financial statements for the year ended Dec. 31, 2022, and the associated management discussion and analysis (MD&A) are available on SEDAR under the company's profile.

The company previously recognized goodwill and intangible assets related to the Unifire Inc. acquisition. The company reviews goodwill and intangible assets annually and records any necessary impairments. The timing of contracts has resulted in significant year-over-year fluctuations in Unifire's revenues, making it difficult to project future revenues reliably. As a result, the company recognized a non-cash impairment on goodwill and intangible assets totalling $17,809,224. This impairment does not affect the company's cash position, cash flow from operating activities or future operations.

"Management's decision to recognize a writedown (impairment) on the goodwill (and other intangible assets) associated with the Unifire acquisition during the fourth quarter of 2022 was made to mitigate the potential impairment of income during future reporting periods," said Buck Marshall, president and chief executive officer of Mission Ready. "Given the many open solicitations and sales opportunities before the company -- many of which are significantly past the original award dates -- we are hopeful that these delayed opportunities will begin to come to fruition in the very near term. It is our belief that the strategic decisions we make now will have a great and lasting impact on the company's success down the road."

The company also provides further insight into the recent ballistic combat shirt (BCS) solicitation. The company had previously received a request to maintain pricing through April from the U.S. Army Contracting Command -- Aberdeen Proving Ground. The company subsequently received another amendment signed by company officials on April 18, 2023, effectively moving the solicitation's expected response to October, 2023.

"The latest amendment to the solicitation reaffirms the ongoing requirement and aligns with the U.S. government's new fiscal year that could see appropriations for the ballistic combat shirt," said Francisco Martinez, chief technology officer. "Soldier's protection remains at the forefront of the U.S. Army priorities for troop enhancements, ensuring that they augment soldier's mobility while optimizing protection."

The company also provides additional insight following its attendance at the Make PPE in America Industry Day. The event, hosted by the Department of Health and Human Services (HHS), also included senior members from the Defense and Logistics Agency (DLA), the Department of Homeland Security (DHS) and the Department of Veterans Affairs (VA). During the event, the agencies provided additional visibility into their current procurement structure, past performance and goals. Notably:

• VA and DLA currently have active inventories and share a similar structure in procurement, using prime vendor programs, distribution and pricing agreements, and blanket purchase agreements to ensure long-term procurement and readiness.
• VA and the Secretary of Defense are working on readiness and resilience, ensuring they can respond to the fourth mission, acting as a backstop for the U.S. health care system in the case of catastrophic events.
• All agencies are unanimously committed not to holding expired PPE (personal protective equipment).
• The lack of adequate supply of domestically produced PPE was an enormous challenge for the United States during the COVID-19 pandemic, and VA and DLA are committed to never face that challenge again.
• Jointly, VA and DLA's goal is to continue fostering industry growth, favouring contracts of more than two years, domestically sourced, reinforcing compliance of PPE products and ensuring that the industry is promoted, namely through innovation, helping its products stand out internationally.

Mr. Marshall added: "The need for made-in-America PPE and the desire to support an industry that jointly stepped up to the challenge when the government called for help is at the forefront of the discussions, and we look forward to continuing to provide U.S.-made solutions to respond to the demand."

About Mission Ready Solutions Inc.

Mission Ready Solutions provides comprehensive government contracting solutions with extensive experience in delivering quality, mission-critical products and services for law enforcement, firefighters, first responders, military and other governmental agencies.

Through its privileged access to a host of federal contracting vehicles, including multiple award schedule (MAS) contracts awarded and administered by the U.S. General Services Administration, Mission Ready's wholly owned subsidiary, Unifire, leverages its robust vendor network, time-proven industry relationships, proprietary technology infrastructure, and industry-leading manufacturing and distribution capabilities to efficiently source and deliver more than 1.5 million products.

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