Mr. Harris Liontas reports

NOVRA ANNOUNCES FINANCIAL RESULTS FOR THE FIRST SIX MONTHS OF 2023

Novra Technologies Inc. has released its financial results for the six months ended June 30, 2023.

Novra's revenue improved significantly in second quarter compared with the previous quarter, and the company's current healthy product inventory levels are allowing it to ship many of its new orders from stock. It expects to deliver the rest of its significant backlog brought into this year in the second half of 2023.

Net income loss for the six-month period improved by 44 per cent or $375,000 compared with a loss of $850,000 in 2022. An 11-per-cent reduction in operating costs made a significant contribution to this improvement. In the most recent quarter, Novra's adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was positive $85,000. It continues to aggressively manage expenses and adjust expenditures in response to market conditions and expects operating expenses to continue to trend lower.

Novra currently has more than $2.7-million in cash deposits and cashable guaranteed investment certificates (GICs), providing a large pool of liquid funds. While actively controlling costs, it is also investing prudently in developing the technologies and products needed to meet the future requirements of current and new customers. As part of this effort, it was recently awarded a U.S. patent for new technology that harnesses its experience in image processing to tackle the challenge of remote collaboration. It is in the process of refining the design for manufacture and exploring applications for this new technology.

It continues to see pent-up demand in its markets. Infrastructure replacements will be necessary due to technology obsolescence, aging equipment and new business requirements. However, this is countered by the economic uncertainty, rising interest rates and contracting availability of capital that are leading some of its large clients to delay investments in their infrastructures. Novra has been able to compensate for this in 2023, achieving slightly higher revenue and much improved customer diversity through sales to a broad range of smaller customers. Its top-10 customers in this period last year drove 84 per cent of total revenue. This year, its top-10 customers drove just 59 per cent of total revenue.

An important component of its research and development strategy over the last three years has been the continued development of the MISTiQ platform for cloud-based distribution of content, which it provides as a service. It is also expanding its software products, including Datacast XD content management and distribution, into the software-as-a-service model. This recurring revenue model is increasingly popular with customers which do not have to invest up front in software, and it is part of its approach to its continuing strategic goal of generating a more consistent revenue base. In a project-based business like Novra's, this offers the advantage of smoothing out inconsistent revenues. The work it has done and its substantial R&D investment over the past several years are paying off as it books more and more service business, including the recent selection by two major Canadian broadcasters of MISTiQ for their cloud-based content distribution.

See more financial highlights in the attached chart.

"We are happy to see positive trends in Novra's results and to have diversified our customer base to compensate for interruptions in some of our key customers' infrastructure investments, which result from the challenges of current global conditions and shifts in their markets. At the same time, we are also focused on developing products and services that will help our customers, new and old, to survive and thrive in their current challenging markets. Our customer-proven subscription services, financing options and flexible, cost-effective products are all targeted to address customers' key technical requirements and business needs. Our primary focus continues to be on enabling the success of our clients though our products, services, technical expertise and partnership," said Harris Liontas, president and chief executive officer.

For additional details on Novra's results and outlook for the six months ended June 30, 2023, please refer to management's discussion and analysis and consolidated financial statements, which are available on SEDAR+.

About Novra Technologies Inc.

Novra (TSX Venture Exchange: NVI) (OTCQB: NVRVF) is an international technology provider of products, systems and services for the distribution of multimedia broadband content. The Novra group of companies includes Novra Technologies Inc., International Datacasting Corp. and Wegener Corp. The companies in the group are known for a strong focus on applications, including: broadcast video and radio, digital cinema, digital signage, and highly reliable data communications.

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