Mr. Dwayne Kushniruk reports

ONESOFT SOLUTIONS INC. REPORTS RESULTS FOR FIRST QUARTER ENDED MARCH 31, 2023 AND PROVIDES A BUSINESS UPDATE

OneSoft Solutions Inc. has released its financial results for the three months ended March 31, 2023.

Please refer to the unaudited condensed consolidated financial statements and management's discussion and analysis (MD&A) for the three-month period ended March 31, 2023, filed on SEDAR for more information. The MD&A contains a complete analysis of Q1 2023 and other information. Unless otherwise specified, all dollar amounts are denominated in Canadian dollars.

Financial highlights:

• Revenue in Q1 2023 was $2.2-million, an increase of 72 per cent or $900,000 over Q1 2022 revenue of $1.3-million.
• Gross profit increased 73 per cent to $1.6-million in Q1 2023 from $900,000 in Q1 2022. Gross profit as a percentage of sales was 70.5 per cent in Q1 2023 versus 70.1 per cent in Q1 2022.
• The net loss was $700,000 in Q1 2023, a $400,000 improvement over Q1 2022's loss of $1.1-million, driven by the increase in gross profit.
• Liquid assets increased by $2.7-million to total $7.4-million at March 31, 2023 ($4.7-million as at Dec. 31, 2022), comprising $5.2-million cash and accounts receivable of $2.2-million. Customers renewing their CIM (Cognitive Integrity Management) contracts for CIM usage generated the increase.

Review of fiscal 2023 guidance

Further to the company's fiscal 2023 guidance stated in a news release issued on Jan. 24, 2023, management currently believes that the company is on track to achieve fiscal 2023 financial results as stated in its guidance. Relevant figures for Q1 2023 are summarized in the attached table.

Readers are encouraged to refer to the Q1 2023 MD&A for more information regarding guidance and actual Q1 2023 figures.

Business update

Technology development and product road maps

To strengthen the company's competitive moat and in response to input regarding existing customers' functionality requirements, the company continues to execute and deliver upon its technology and product development plans. In consultation with current and prospective customers, the company expended efforts to advance its core CIM, internal and external corrosion, crack, and risk modules. Management believes CIM enhancements continue to build and strengthen OneSoft's competitive moat, encourage customer loyalty, and contribute to customer stickiness. The company believes that providing the full complement of software-as-a-service functionality requested by customers will provide opportunities to increase revenues from existing and future customers and preclude them from investigating potentially competitive solutions in future periods.

The company also continued to research pipeline bending strain and potentially other aspects of geohazard threat management. If this project proceeds beyond the innovation lab through to product commercialization, the resulting module(s) will be marketed as additional revenue-generating components of CIM.

Sales and marketing

Sales and marketing initiatives continued in Q1 2023 which included sales efforts with prospective customers in North America and other jurisdictions in the world. OneSoft expects to enter into multiyear CIM SaaS contracts with new customers and to sell CIM components and services to IM (integrity management) operations customers in fiscal 2023 and future years.

The company invested resources to upgrade various marketing processes and tools during the last quarter, which it believes will optimize lead generation and sales efforts in future periods. These processes and tools are expected to improve customer support and enhance referability of CIM and related modules by existing customers to prospective customers.

Please refer to the MD&A for more information regarding the company's progress.

Outlook

Management believes that sales and revenue growth will continue into the foreseeable future based on three factors: (a) the company's solutions are continually receiving strong validation as CIM use increases and user experiences are shared amongst industry participants; (b) OneSoft's pipeline of prospective customers continues to grow; and (c) the company's competitive moat continues to grow, evidenced by the fact that it has not seen any competing solution to CIM that leverages machine learning, data science and cloud computing commercialized to date, world-wide, at trade shows or during competitive sales processes. OneSoft is encouraged that certain prospective customers, that are not early adopters of new technology and that had no prior interest in replacing their legacy systems and processes with CIM, are now considering CIM as their next-generation solution, as a result of the positive user experiences and validations stated by the company's current customers. OneSoft believes that the company has crossed the chasm from only dealing with innovators and early adopter customers to now include majority market customer cohorts.

Sales efforts are currently under way with prospective customers in North and South America, Europe, Middle East, and Australia, and several United States-based customers have initiated efforts to expand their use of the company's solutions to their international operating divisions. Management believes that OneSoft is poised for approximately 50-per-cent revenue growth in fiscal 2023 over fiscal 2022 and to achieve near-cash-neutral monthly operations late in fiscal 2023. With a strong balance sheet, sufficient cash on hand and a strong base of hallmark customers that generate recurring revenues, OneSoft believes there will be no requirement to raise additional capital to execute current business and operational plans.

Postreporting date event

On July 27, 2020, the company published a news release advising that the company had filed a statement of claim against Cylo Technologies Inc. and its principals. On May 10, 2023, the company settled the lawsuit, terms of which included discontinuance on a without costs basis, the assignment to OneBridge Solutions Canada Inc. of two patents and one patent application registered by Cylo, which embody portions of past-generation OneBridge technology, payment by Cylo of approximately $40,000 in settlement of unpaid royalties, non-competition and non-solicitation agreements, cancellation of the prior software licence agreement, and adoption of a replacement software licence agreement that allows Cylo to continue to use OneBridge past-generation technology.

Webcast: annual general and special meeting of the shareholders May 23, 2023

The annual general and special meeting of the shareholders will be held May 23, 2023, at 1 p.m. Mountain Time and may be attended by telephone access at 888-816-4438 using access code 682-314-015. After the formal portion of the meeting, management will review the fiscal 2022 results and answer shareholder questions.

About OneSoft Solutions Inc.

OneSoft has developed software technology and products that have capability to transition legacy, on-premises licensed software applications to operate on the Microsoft Azure cloud platform. Its business strategy is to seek opportunities to incorporate data science and machine learning, business intelligence, and predictive analytics to create cost-efficient, subscription-based software-as-a-service solutions.

OneSoft's wholly owned OneBridge subsidiaries develop and market revolutionary new SaaS solutions that use advanced data sciences and machine learning to analyze big data using predictive analytics to assist oil and gas pipeline operators to predict pipeline failures and thereby save lives, protect the environment, reduce operational costs and address regulatory compliance requirements.

We seek Safe Harbor.