Mr. Dwayne Kushniruk reports

ONESOFT SOLUTIONS INC. REPORTS Q2 2023 RESULTS FOR FISCAL 2023

OneSoft Solutions Inc. has released its financial results for the three and six months ended June 30, 2023. OneSoft Solutions will host a webcast to discuss the financial results today at 11 a.m. ET (8 a.m. PT).

Please refer to the interim unaudited condensed consolidated financial statements and management discussion and analysis (MD&A) for the three and six months ended June 30, 2023, filed on SEDAR+ for more information.

Financial highlights:

• Revenue in Q2 fiscal 2023 was $2.5-million, an increase of 87 per cent, or $1.2-million, over Q2 fiscal 2022 revenue of $1.3-million.
• Annual recurring revenue increased quarter over quarter by $733,051, or 59 per cent, due to greater CIM use by existing customers and the inclusion of IM Operations software maintenance revenue.
• Gross profit increased 109 per cent to $1.9-million in Q2 2023 from $900,000 in Q2 2022.
• Gross profit as a percentage of sales was 75.9 per cent in Q2 2023, an improvement over the 68.0-per-cent gross profit percentage reported in Q2 2022.
• The net loss was $600,000 in Q2 2023, an improvement from Q2 2022's loss of $1-million.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), a non-GAAP (generally accepted accounting principles) measure reconciled to the net loss in the MD&A filed on SEDAR+, improved from a loss of $700,000 in Q2 2022 to a loss of $200,000 in Q2 2023.
• Liquid assets increased by $1-million to total $5.7-million at June 30, 2023 ($4.7-million as at Dec. 31, 2022), comprising cash and cash equivalents of $5-million and accounts receivable of $700,000.

Quarterly revenue

Quarterly revenue increased as a result of the expanded use of CIM by existing customers, continued addition of new customers and the acquisition of IM Operations' customers acquired June 30, 2022. Management's objective is to continue to increase revenues to drive cash flow and profitability, which OneSoft believes will increase future company value for shareholders.

Review of fiscal 2023 guidance

Further to the company's fiscal 2023 guidance stated in a news release issued on Jan. 24, 2023, the company advises its progress for the first six months of fiscal 2023 is as follows.

Revenue was $4.7-million in the first half of 2023 and management is not changing its revenue guidance for forecasted 2023 revenue at this time.

Management reiterates its gross profit guidance of $7.6-million in fiscal 2023 as forecasted.

The company plans to increase its development staff, which will increase previously forecasted expenses in the second half of fiscal 2023 and may negatively impact the forecasted net loss and adjusted EBITDA figures. Please refer to the business update section in the Q2 2023 MD&A filed at SEDAR for details in this regard.

An attahed table states forecasted cash and deferred revenue balances as at Dec. 31, 2023, and actual values as at June 30, 2023. Management believes the fiscal 2023 forecasted figures will be achieved.

CIM use and revenue-generating data miles

An attached table estimates the miles of customers' pipelines operated, miles that are subject to multiyear SaaS (software as a service) agreements and miles of pipeline data ingested into CIM for which revenue was earned (data miles).

Business update

Fiscal 2023 business plan pivot

Dialogue with existing customers and sales activities with certain North American and international pipeline companies continues to expose new opportunities for the company to develop additional functionality and products that can potentially drive new sales and increase future revenues. The Company's Management and Board of Directors met for strategic planning sessions during Q2 2023 to explore alternatives to: (a) identify and assess revenue growth opportunities; (b) ensure the Company continues to retain its technological leadership; and (c) strengthen its competitive moat. Certain decisions made at these sessions will alter part of the business plan that was considered to estimate the January 24, 2023 guidance. Management believes functionality enhancements and additions continue to build and strengthen our competitive moat, encourage customer loyalty and contribute to customer "stickiness". We believe that providing the full complement of SaaS functionality requested by customers will preclude our customers from engaging with potentially competitive software vendors. Accordingly, a decision was made to increase technology and product development resources, which will result in increased expenses in Fiscal 2023 and potentially increased net loss and EBITDA deficit, depending upon the volume of new sales that will be completed in the last half of 2023.

Management believes that the Company has sufficient cash on hand to fund additional product development and that this change to the Fiscal 2023 business plan will result in reducing the lead time for revenue from new products that are currently being developed.

BUSINESS OUTLOOK

Management is pleased that the first six months of Fiscal 2023 2023 has progressed in accordance with expectations and is optimistic that the second half of Fiscal 2023 will continue to evolve as planned. We believe that sales and revenue growth will continue into the foreseeable future based on three relevant factors: (a) the Company's solutions are continually receiving stronger validation as CIM use increases and user experiences are shared amongst industry participants; (b) our pipeline of prospective customers continues to grow; and (c) our competitive moat continues to grow, evidenced by the fact that we do not encounter any solutions that are competitive with CIM capabilities in our sales activities, other than legacy third party products or software applications that have been developed for internal use by some of the larger pipeline companies. We are encouraged that our customer base and pipeline miles under CIM use continues to increase and that some large pipeline operators, such as our latest customer addition, have chosen to use CIM rather than continue to pursue in-house software development.

Sales efforts are currently underway with prospective customers in North and South America and Australia and several customers have initiated efforts to expand use of our solutions to their international operating divisions and acquired operations. OneSoft is poised to achieve approximately 50% revenue growth in Fiscal 2023 over Fiscal 2022. With a strong balance sheet, sufficient cash on hand, a strong base of hallmark customers who generate recurring revenues and the ongoing sales activities, we believe there will be no requirement to raise additional capital to execute current business and operational plans.

Q2 2023 EARNINGS WEBCAST / CONFERENCE CALL

OneSoft's CEO Dwayne Kushniruk, President & COO Brandon Taylor and CFO Paul Johnston will host a live webcast on Thursday, August 17, 2023 at 11:00am ET to review the results, provide Company updates, and answer investor questions following the presentation. Webcast / Conference call details are as follows:

DATE: Thursday, August 17, 2023TIME: 11:00am ET (8:00am PT)WEBCAST: Webcast Link

OPTIONAL PARTICIPANT TELEPHONE NUMBERS:Canada/ USA: 1-800-319-4610 (Toll-free)International Toll-Free 1-604-638-5340 (TOLL)

Callers should dial in 5 - 10 min prior to the scheduled start time and simply ask to join the OneSoft Solutions call.

REPLAY: Available at: https://www.onesoft.ca/

About OneSoft and OneBridge

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. Our business strategy is to seek opportunities to incorporate Data Science and Machine Learning (a component of Artificial Intelligence), business intelligence and predictive analytics to create cost-efficient, subscription-based software-as-a-service solutions. Visit www.onesoft.ca for more information.

OneSoft's wholly owned subsidiaries, OneBridge Solutions develops and markets revolutionary new SaaS solutions that use advanced Data Sciences and Machine Learning to analyze big data using predictive analytics to assist Oil & Gas pipeline operators to predict pipeline failures and thereby save lives, protect the environment, reduce operational costs, and address regulatory compliance requirements. Visit www.onebridgesolutions.com for more information.

We seek Safe Harbor.