Mr. Clayton Moore reports

NETCENTS TECHNOLOGY UPDATES STAKEHOLDERS ON ONGOING ADVANCEMENTS TO ITS ACCOUNTING PROCESSES

NetCents Technology Inc. has provided updates on the continuing progress in its accounting and auditing processes.

Over the recent months, the NetCents team has been working hard to prepare its 2021 financial statements in anticipation of its 2021 year-end audit. Subsequent to the completion of the 2020 year-end filing in October, 2022, the company received numerous document requests from the British Columbia Securities Commission (BCSC) between October, 2022, and February, 2023. These requests included the auditor's work papers and other documentation related to the 2020 audited financial statements. NetCents has promptly responded to all inquiries from the BCSC, demonstrating its commitment to transparency and co-operation. Importantly, no regulatory actions have been taken against the company. Moreover, the company has not received any further inquiries from the BCSC regarding this matter since February, 2023.

The Canadian Public Accountability Board (CPAB) also has contacted the company's auditors to review their processes and methods. Although these interactions have led to delays in the 2021 audit completion timeline, NetCents remains fully committed to working closely with the auditors to assist in their review and recommendations. The company's primary objective is to assist the auditors in satisfying the CPAB's recommendations, ensuring effective and transparent accounting procedures moving forward.

Looking ahead, NetCents is scheduled to recommence its interaction with the auditors in mid-August to initiate the 2021, 2022 and 2023 fiscal year-end auditing procedures. Rest assured, the NetCents accounting team has painstakingly arranged all necessary paperwork to ensure a smooth auditing process.

These efforts align with the company's unique business model as a cryptocurrency merchant processor, differentiating NetCents from traditional players such as Visa and MasterCard. The Company's role as a facilitator of payments between customers and merchants involves accepting cryptocurrency payments, converting them to fiat currencies, and remitting the value using traditional banking systems. This unique business model introduces complexities involving multiple asset classes transiting through the Company balance sheet, which we are committed to addressing efficiently.

To help bridge the gap between its innovative business model and conventional accounting practices, the accounting department has developed reporting processes that integrate transaction and payment data from the merchant gateway into the accounting system. The company has established a multicurrency and asset accounting process within its existing infrastructure and engaged with industry experts to facilitate the implementation of these changes. The company is now focusing on further automating and speeding up the reconciliation process for multiple bank accounts, crypto wallets and currency pairs.

In addition, the company has decided that its primary currency for daily operations and financial reporting will be U.S. dollars, shifting away from Canadian dollars. This decision aligns NetCents better with industry standards and further streamlines its accounting efforts.

With these updates and changes, NetCents remains committed to integrating its innovative business model with traditional accounting standards. The company will continue to focus on making necessary updates and achieving compliance in the forthcoming months. As it prepares its quarterly filings for 2021 and 2022, which will occur in the coming months, NetCents also looks forward to progressing the audit process efficiently.

The timeline for completing the audit is influenced by various elements, with the efficiency of the audit process being paramount. The process has proven somewhat atypical and more intricate and time-consuming than usual. In response, strategies are being evaluated to ensure a smoother and quicker execution of tasks.

Following the audit, the focus will shift to the relisting process with the Canadian Securities Exchange, which calls for comprehensive information about directors, executives and other relevant details. The documentation required by the CSE is already in the works. The objective is to wrap up all these proceedings by late winter or early in the new year. However, this timeline is an approximation and might require adjustments in the face of unforeseen challenges. Despite this, optimism remains high within the team, and progress is being made quickly and steadily.

It is crucial to acknowledge that despite numerous challenges and hurdles, the company has persevered and achieved steady growth in its business operations and platform. In the face of delays, complications and extensive reviews, alongside the additional burden on company resources, NetCents has managed to navigate these obstacles adeptly.

One noteworthy achievement is the substantial increase in monthly volumes and merchant adoption. Despite the aforementioned difficulties, the company has successfully attracted a more extensive customer base and enticed more merchants to utilize its services. This growth is a testament to the company's commitment to providing top-notch solutions and building strong partnerships within the industry.

Moreover, the company's expansion on a global scale has been commendable, now transacting in 47 countries and counting. Its successful penetration into new markets is exemplified by the recently obtained licensing in the Middle East. In addition, the company is making significant strides in securing licensing in the United Kingdom and Europe, a move set to strengthen its presence in these regions substantially.

Furthermore, NetCents has set its sights on the burgeoning Latin American market, a region it firmly asserts, contrary to common perception, is an underappreciated market with enormous potential. This market is emerging as a prominent arena for the crypto payments and remittance industry. The company also is earnestly striving to establish a firm foothold in Asia. These strategic moves underscore the company's unwavering dedication to broadening its operations and reaching out to new customer segments across a diverse range of geographical landscapes.

As of today, the company continues to be subject to a cease trade order and is working diligently to complete the annual financial statements for the fiscal year ending Oct. 31, 2021, and the fiscal year ending Oct. 31, 2022.

About NetCents Technology Inc.

NetCents Technology, the transactional hub for all cryptocurrency payments, equips forward-thinking businesses with the technology to seamlessly integrate cryptocurrency processing into their payment model without taking on the risk or volatility of the crypto market. NetCents Technology is registered as a money services business (MSB) with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).

We seek Safe Harbor.