Mr. Adam Zaghloul reports

NTG CLARITY REPORTS 96% REVENUE GROWTH IN SEVENTH CONSECUTIVE RECORD-SETTING QUARTERLY FINANCIALS WITH $2.44M PROFIT

NTG Clarity Networks Inc. has released its second quarter results for the period ended June 30, 2024.

Thanks to the hard work and commitment of NTG Clarity's entire team and the confidence of its customers, Q2 (second quarter) 2024 has had the highest-ever single quarter revenue at $12,488,315, up 96 per cent compared with Q2 2023. This makes the seventh consecutive quarter setting all-time revenue records, while maintaining and increasing profitability with $2,443,374 in profit for Q2 2024. This is up 250 per cent from Q2 2023 and again is more profit in the quarter than NTG Clarity saw in the entire fiscal year of 2023, while also being an all-time quarterly profit record.

NTG Clarity has a positive working capital of $2,635,848 as of June 30, 2024, compared with a deficit of $2,092,663 on Dec. 31, 2023. With funds from its accelerating growth, NTG Clarity has reduced its long-term debt by a total of $367,618 for the year, including $300,000 toward the outstanding indebtedness held by a numbered company.

Improvements on NTG Clarity's balance sheet have led to a shareholders' equity of $1,824,101 as of June 30, 2024, compared with a deficit of $3,237,143 at Dec. 31, 2023, marking the first quarter with a positive shareholders' equity since Q3 (third quarter) 2016.

In the first half of 2024, NTG Clarity has consistently had quarterly bottom line net income margins of around 20 per cent. Due to this consistent exceeding of guidance, NTG Clarity is actively reviewing its targets for 2024 and expects to share updated guidance in the near future.

Outlook

NTG Clarity's record of sustained rapid growth in growing markets has continued with another quarter breaking revenue record and with Q2 having the highest single-quarter revenue ever.

Q2 was the seventh consecutive record-breaking quarter for revenue. Consolidated revenue for Q2 2024 was $12,488,315, up 96 per cent from $6,373,261 for the same period in 2023. The trend in growth carries forward to NTG Clarity's net income as well, with Q2 2024 having a net income of $2,443,374, up 250 per cent from $698,261 for the same period in 2023.

With its ambitious Vision 2030 economic development plan, the Kingdom of Saudi Arabia (KSA) is focused on diversifying its economy away from oil and gas by investing in digital transformation, AI (artificial intelligence), infrastructure, tourism, entertainment and being a hub for financial activities in the region. With decades of experience in the region, NTG Clarity expects the strong demand for its services and products to continue as these sectors rapidly build out technical infrastructure and software, and choose NTG Clarity as their preferred partner. KSA continues to be the primary contributor to the company's revenue growth with an increase of 146 per cent over the same period last year.

NTG Clarity also has a team of sales personnel dedicated to its flagship software product, NTGapps, targeting new customers in this currently booming KSA economy. NTG Clarity is targeting small- and medium-sized enterprises (SME) across multiple verticals that now include the medical sectors, and the food and beverage industry in addition to the telecom and financial sectors.

In 2021, management began transforming NTG Egypt into a supplier of offshore services for international customers through NTG Clarity's Egypt offshore centre, scaling back sales activities in Egypt, except for supporting NTG Egypt's legacy customers. This strategy allows NTG Clarity to pay expenses in the devalued Egyptian pound, while collecting revenue in stronger currencies, such as the Saudi riyal, which is pegged to the U.S. dollar.

Since embracing this offshore model, NTG Clarity has been able to connect more clients with talented candidates faster, accelerating their digital transformation journeys, all the while at a lower cost to them and providing consistent margins for NTG Clarity. This is NTG Clarity's strategy -- to hedge the devaluation of the Egyptian pound while continuing to take advantage of growth in the region.

NTG Clarity's current work on hand (which includes unbilled POs (purchase orders) as of June 30, 2024, and new POs/contracts received and previously announced since then) is approximately $26.7-million, the majority of which is expected to be completed in 2024. Note this does not include some of the announced contracts for which NTG Clarity did not receive POs. This, along with NTG Clarity's $24.2-million in booked revenue in 2024 YTD (year to date) puts the company in a strong position to meet its $50-million 2024 revenue target.

In the first half of 2024, NTG Clarity has consistently had quarterly bottom line net income margins of around 20 per cent. Due to this consistent exceeding of guidance, the company is actively reviewing its targets for 2024 and expects to share updated guidance in the near future.

As it enters the second half of 2024, NTG Clarity continues to grow with a focus on its four-part commitment to:

1. Customers by providing flexible, quality services at a competitive price:
   • The company accelerates and simplifies the digital transformation journey for its clients by providing the right solution delivered by passionate professionals both on their sites and offshore.
2. People by helping NTG Clarity's staff grow and develop personally and professionally:
   • The company empowers its staff to build and deliver challenging projects while providing opportunities for training and career advancement both internally and outside NTG Clarity.
3. Shareholders by continuing NTG Clarity's growth trajectory and profitability:
   • With purchase orders on-hand and contracts the company expects to close, NTG Clarity projects its 2024 revenue to be approximately $50-million.
   • With three years of consistent profitability under its belt, the company is actively identifying opportunities to make sure as much of this new revenue as possible flows to the bottom line.
   • The increase in share price in 2024 has gone from 20 cents in January to 93 cents at the end of June, a 365-per-cent increase in six months.
4. Community by passing NTG Clarity's experience down to the next generation:
   • The company provides youth education and employment opportunities tailored to the modern job market through the NTG academies, school and on-the-job training.

The company looks forward to continuing its growth through 2024 and beyond, using its growing funds to create value for its shareholders by investing in growth initiatives and continuing to pay down its longer-standing debts.

In an unrelated matter, the company announced that share options will be issued for each member of the company's board of directors; Ashraf Zaghloul and Kristine Lewis will receive 100,000 share options each; Saleem Siddiqi and Zeeshan Hasnain will receive 75,000 share options each. Each option will be exercisable at a price of 90 cents per share and will vest immediately.

About NTG Clarity Networks Inc.

NTG Clarity's vision is to be a global leader in digital transformation solutions. As a Canadian company established in 1992, NTG Clarity has delivered software, networking and information technology (IT) solutions to large enterprises, including financial institutions and network service providers. More than 700 IT and network professionals provide design, engineering, implementation, software development and security expertise to the leading enterprises of the industry.

We seek Safe Harbor.