Mr. David McPhail reports

MEMEX INC. REPORTS Q2-2023 RESULTS

Memex Inc. has released financial and operational highlights for its second quarter ended March 31, 2023. A complete set of its March 31, 2023, condensed interim consolidated financial statements and management's discussion and analysis has been filed at SEDAR.

Summary financial highlights for the three months ended March 31, 2023:

• Revenue of $471,000 versus $473,000 in the year-ago quarter, virtually unchanged;
• Bookings for the three-month period totalled $554,000 versus $426,000 in the year-ago period, a 30-per-cent increase, and $676,000 in the first quarter of 2023, an 18-per-cent decrease;
• Finished the quarter with $656,000 in project backlog, up 14 per cent from Sept. 30, 2022;
• Gross margin was 72.5 per cent for the period compared with 66.5 per cent for the year-ago period;
• Cash utilized in operations (before changes in non-cash items) of $82,000 was $115,000 better than the $197,000 consumed through operations in the year-ago period;
• Loss from operations of $118,000 versus a $244,000 operational loss in the year-ago period is a 52-per-cent improvement;
• Net and comprehensive loss of $145,000 (0.1 cent per share) was a $134,000 improvement on the $279,000 net and comprehensive loss for the same period a year ago;
• $54,000 in working capital (excluding unearned revenue) at March 31, 2023, is a $131,000 improvement from the $77,000 deficit at Sept. 30, 2022; cash on hand of $146,000 is down 50 per cent from the $290,000 on hand at Sept. 30, 2022.

Summary financial highlights for the six months ended March 31, 2023:

• Revenue of $1.03-million was a 6-per-cent increase from the $974,000 in the year-ago period.
• Bookings totalled $1.23-million versus $1.39-million in the same period a year ago, an 11-per-cent decrease.
• Gross margin was 78.1 per cent compared with 71.8 per cent for the year-ago period.
• Cash consumed from operations (before changes in non-cash items) of $43,000 was $285,000 less than the $328,000 consumed in the first six months of fiscal 2022.
• Net and comprehensive loss of $164,000 (0.1 cent per share) was $293,000 better than the $457,000 net and comprehensive loss generated for the same period a year ago.

As announced and formed last October, the special committee of independent directors continues to explore and evaluate a broad range of strategic alternatives looking to accelerate the growth of the business. Among other things, this special committee's review has involved evaluation of the company's strategic direction, operations, market valuation and capital structure.

About Memex Inc.

Established in 1992, Memex grew to be an industry leader in industry Internet of things through the development of Merlin Tempus, an award-winning platform that delivers real-time, tangible increases in manufacturing productivity. Memex is on the leading edge of industry trends in computing power, machine connectivity, industry standards, advanced software technology and manufacturing domain expertise.

Its persistent pursuit of innovative IIoT solutions led to a comprehensive understanding of the challenge's manufacturers face. The company made it its mission to, "successfully transform factories of today into factories of the future." As the global leader in machine-to-machine connectivity solutions, its hardware and software products create unparalleled visibility at all levels from shop floor to top floor.

The Merlin Tempus suite provides effective quantification and management of over all equipment effectiveness (OEE) by revealing hidden capacity using real-time objective data. Further, it offers sustainable benefits that enable world-class OEE such as reducing costs, incorporating strategies for continuous Lean improvement and boosting bottom-line financial performance.

We seek Safe Harbor.