Mr. Shane Madden reports

HYDREIGHT REPORTS RECORD REVENUE IN Q3 2023

Hydreight Technologies Inc. has released its financial results for the third quarter ended Sept. 30, 2023.

Shane Madden, chief executive officer of Hydreight, commented: "Q3 2023 was an excellent quarter for Hydreight, and our financial results reflect the continued organic growth across all our divisions and diverse revenue mix. Q3 was the eighth consecutive quarter of meaningful revenue growth, and we expect a strong finish to 2023 and momentum to continue into 2024. Our focus in the first half of the year was developing and advancing our proprietary technology platform, adding features including direct booking, telemedicine and a dispatch centre, and adhering to the state-by-state health care regulations to ensure compliance. These advancements, in turn, create a fully automated, fully integrated, turnkey solution, which enables nurses to deliver services outside of traditional brick-and-mortar health care facilities. We have created one of the only health care technology platforms that works across 50 states and over 650 cities in the United States. Because of that, Hydreight has a significant competitive advantage in the sector."

He continued: "In the last two years, we've experienced significant growth. Looking ahead, our focus includes expanding services for our customers, growing our network of nurses and users, driving white-label partnerships, increasing margins on our pharmacy division, and looking at strategic tuck-in [merger-and-acquisition] opportunities to scale the business quickly and efficiently. Recent legislative changes in the health care market, particularly in the 503B landscape, have affected patient-specific prescriptions for previously over-the-counter medications. The technology and legal investments we made in the beginning of the year have uniquely positioned Hydreight to fill this gap and enable health care practitioners and health care businesses to operate legally under our platform. This remains a key competitive advantage, establishing us as industry leaders with a proprietary platform poised for continued growth. I am proud of our team's ability to execute our growth strategy, adapt swiftly to evolving industry legislation and deliver meaningful results."

Third quarter 2023 key highlights and subsequent events:

• Q3 2023 top-line revenues were $3.97-million, and generally accepted accounting principle revenues were $3.09-million. Year-to-date top-line revenues were $12.06-million, and YTD GAAP revenues were $8.14-million. On a top-line basis, the revenue contribution across its three main revenue streams: subscriptions, service fee and pharmacy was equal. The company recently launched its new white-label solution, which will start contributing to the current revenue mix.
• Q3 2023 gross profit margin (GAAP) was 41 per cent compared with 52 per cent in Q3 2022. The decrease in overall gross margin percentage is due to the increase in the lower gross margin pharmacy sales relative to total revenue.
• The company on-boarded 318 nurses on its platform in Q3 2023. YTD, the company on-boarded 595 nurses on the platform. Currently, there are approximately 2,600 nurses on the platform.
• The company expanded its doctor network to over 100 doctors nationally and expanded its service offering to over 650 cities across 50 states.
• The company has approximately 90 white-label locations nationwide, with new locations opening every month.
• On Nov. 8, 2023, Hydreight was named one of Canada's companies to watch as part of the 2023 Deloitte Technology Fast 50 program. The award highlights the company's significant organic revenue growth of 250 per cent year over year, and validates the business operations and key differentiators Hydreight has in the market.
• On Oct. 19, 2023, Hydreight launched NAD+ as part of its robust patient service offering on its proprietary health care technology platform. NAD+ or nicotinamide adenine dinucleotide is a co-enzyme central to metabolism, which is found in all living cells and consists of two nucleotides joined through their phosphate groups. Clinical studies have suggested that NAD+ may help to improve cognitive function, energy, weight management and pain management, and may also reduce and reverse effects of aging and more.
• On Oct. 5, 2023, Hydreight provided a corporate update, reflecting significant revenue growth and strong organic operational growth.
• On Aug. 24, 2023, Hydreight announced nationwide expansion of doctor network to meet demand across all 50 states across the United States.
• On July 26, 2023, Hydreight announced the launch of its new website booking system and nurse dispatch service, making bookings faster and easier for its customers.
• On July 19, 2023, Hydreight provided a corporate update, citing tremendous growth along with new features and services.

Hydreight has expanded each division according to the revenue generation and needs of each specific division, scaling while the division's initiatives are performing.

The attached table sets out a summary of certain financial results of the company over the past eight quarters, and is derived from the audited annual consolidated financial statements and unaudited quarterly consolidated financials statements of the company.

The company has experienced dramatic user growth over the past two years as can be seen by the consistent revenue growth over the past eight quarters. Net loss and comprehensive loss have generally remained comparable from the fourth quarter of 2021 through the current period when looking only at operating expenses, not including the reverse-takeover-transaction-related expenses included in the fourth quarter of 2022 (see 2022 audited annual financial statements).

Outlook

The company continues to deliver on its mission of building the largest mobile clinical network in the United States. Through its medical network, pharmacy network and proprietary technology platform that adhere to the complex health care legislation across 50 states, Hydreight has provided a fully integrated solution for health care providers to become independent contractors.

Hydreight remains focused on its strategic priorities of: (1) on-boarding and supporting additional nurses on the platform; (2) adding more product and service offerings for its customers; (3) increasing pharmacy margins; (4) driving white-label partnerships; and (5) looking for strategic tuck in M&A opportunities to scale and expand the business quickly and efficiently. Hydreight will continue to invest into its technology to ensure continuous improvements, advancements and updates, adhering to changes within the health care industry.

In 2024, management expects to see meaningful revenue growth and margin expansion across all divisions.

Company webinar

Management will be hosting a webinar to discuss the overall operational performance of the company, as well as its financial performance and growth drivers moving forward. Investors are encouraged to join the presentation.

Date and time:  Wednesday, Nov. 22, 2023, at 9:15 a.m. Pacific Time/12:15 p.m. Eastern Time

Please register.

Restricted stock unit grant

The company also announces that it has granted 254,500 share units to certain employees, a consultant and a director of the company. The awards were granted in accordance with the company's fixed equity incentive plan dated for reference Aug. 29, 2022. Fifty per cent of the RSUs will vest on the one-year anniversary of date of grant, and then 25 per cent every six months thereafter, subject to certain exemptions. Each RSU entitles the holder to receive one common share of the company or, in certain circumstances, a cash payment equal to the value of one common share of the company, at the time the RSU becomes payable pursuant to the terms of the applicable RSU award agreement. Pursuant to the plan, the company is able to grant an additional 1,286,072 awards.

Financial statements and management's discussion and analysis

This news release should be read in conjunction with the company's condensed interim consolidated financial statements and related notes, and management's discussion and analysis, for the three and nine months ended Sept. 30, 2023, and audited annual consolidated financial statements for the year ended Dec. 31, 2022, and copies can be found under the company's profile at SEDAR+.

About Hydreight Technologies Inc.

Hydreight is building the largest mobile clinic network in the United States. Its proprietary, fully integrated platform hosts a network of over 2,500 nurses, over 100 doctors and a pharmacy network across 50 states. The platform includes a built-in, easy-to-use suite of fully integrated tools for accounting, documentation, sales, inventory, booking and managing patient data, which enable licensed health care professionals to provide services directly to patients at home, office or hotel. Hydreight is bridging the gap between provider compliance and patient convenience, and empowering nurses, med spa technicians and other licensed health care professionals. The Hydreight platform allows health care professionals to deliver services independently, on their own terms, or to add mobile services to existing location-based operations. Hydreight has a 503B pharmacy network servicing all 50 states and is closely affiliated with a U.S. certified e-script and telemedicine provider network that provides services in over 650 cities and growing.

We seek Safe Harbor.