Mr. Dwayne Kushniruk reports

ONESOFT REPORTS PRELIMINARY SUMMARY OF FISCAL 2023 OPERATIONS AND PROVIDES GUIDANCE FOR FISCAL 2024

In advance of issuing its audited year-end report for the fiscal year ended Dec. 31, 2023 (fiscal 2023), OneSoft Solutions Inc. has provided a corporate update, preliminary unaudited summary of operations for fiscal 2023 and an outlook for the fiscal year ending Dec. 31, 2024 (fiscal 2024):

• OneSoft's preliminary fiscal 2023 revenue increased 51 per cent year-over-year to $10.4-million, essentially in line with previous guidance of $10.1-million.
• OneSoft's preliminary fiscal 2023 adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) improved from a loss of $2-million to a loss of $85,000 year-over-year, essentially in line with previous guidance of a loss of $28,000.
• Fiscal 2023 growth was driven by continued and increasing consumption of the company's cognitive integrity management (CIM) solution by existing customers and the addition of new customers.
• The company expects revenue growth in 2024 to continue with similar year-over-year trends from existing and new customers, and from sales of new software-as-a-service (SaaS) modules, which is expected to increase revenue per mile of pipeline assets under SaaS agreements.
• OneSoft is issuing fiscal 2024 guidance for revenue of $15-million to $16-million, adjusted EBITDA between $1.6-million and $1.9-million, and forecasted cash at the end of 2024 of between $4.7-million and $5-million.

Fiscal 2023 financial performance update (based on preliminary figures prior to completion of audit)

The company published its fiscal 2023 financial guidance on Jan. 25, 2023. The table entitled "Fiscal 2023 guidance compared to 2023 preliminary estimates and fiscal 2024 guidance" reflects the estimated financial figures for fiscal 2023, which are subject to finalization following completion of the company's audit. Actual audited figures will be published in the company's year-end financial statements, and management's discussion and analysis (MD&A), prior to April 30, 2024.

"With revenue growth of approximately 51 per cent over fiscal 2022, OneSoft essentially met expectations for fiscal 2023, with no material differences from the guidance we published at the beginning of the year," said Dwayne Kushniruk, OneSoft's chief executive officer. "Revenue, cash and deferred revenue exceeded the guidance we provided, and net loss and adjusted EBITDA loss were slightly higher than projected at the beginning of the year, due to higher costs resulting from expansion of our development team during 2023. Looking forward to 2024, we plan to continue to invest to fast-track development of the additional SaaS functionality that will comprise our expanded platform that our customers are requesting. With another year behind us, we continue to gain better visibility into pipeline miles that will generate revenue and business growth in future periods. Based on this, we believe the company is well positioned to continue similar year-over-year growth in fiscal 2024, and we are confident that we can execute our current fiscal 2024 business and operational plans without raising additional capital."

Update regarding pipeline and CIM data-miles

The pipeline miles table entitled "CIM use and revenue-generating data-miles" estimates the aggregate pipeline miles operated by all customers, miles of customers' pipeline assets that are subject to multiyear SaaS agreements and miles of pipeline data ingested into the company's CIM platform on which revenue is earned (data-miles). As these figures are subject to constant changes, OneSoft cautions that information in the table should only be viewed as approximations -- as a snapshot in time.

Fiscal 2024 financial guidance

Brandon Taylor, chief operating officer, added: "We are forecasting revenue in fiscal 2024 to exceed $15-million, with approximately 50-per-cent growth over 2023. Most of 2024 revenue is expected to come from increased use of our SaaS solutions due to existing and new customers onboarding more pipeline miles and commercialization of some of the new modules that are under development. Regarding sales and marketing efforts, we intend to invest more resources to pursue new customers in South America and Europe in 2024, as well as seek relationships with industry partners who can assist us to broaden the adoption of our solutions worldwide. We believe 2024 will be another good year for the company and its stakeholders."

The table entitled "Key financial metrics" summarizes audited figures for the 2021 and 2022 fiscal years, estimated figures for fiscal 2023 which are subject to verification postaudit, and fiscal 2024 guidance.

Fiscal 2024 outlook

Fiscal 2023 was a pivotal year for OneSoft, with the company achieving its key objectives of: (a) exceeding $10-million revenue; (b) achieving near-zero adjusted EBITDA for the year; and (c) gaining more traction to become the next-generation data management and analytics platform for the oil and gas (O&G) pipeline industry. Management believes the company has securely crossed the new technology adoption chasm, wherein its technology and solutions have been strongly validated by industry innovators and visionary early adopters. The company's 2024 objectives include completing the new functionality modules, integrating those into the CIM platform and continuing to become the sole SaaS vendor to fulfill all customers' functionality requirements. Recent new customer acquisitions confirm that the company has successfully progressed to attract more pragmatic customers, which are conservative in their adoption of new technology and represent the majority of opportunities in the marketplace.

The company is also investigating alternatives to accelerate revenue growth and business development, potentially through synergistic merger and acquisition (M&A) activities. Management is optimistic that OneSoft is well positioned to capitalize on its first-mover technology advantage to deliver enhanced benefits to customers and increase value for shareholders.

Fiscal 2023 operational update:

• In October, the company hosted its first annual user group event at the Microsoft Executive Center in Houston. Based on customer feedback, management believes that customers are highly referenceable and that peer-to-peer positive comments in the pipeline integrity community are highly supportive of OneSoft's reputation and business. OneSoft believes there is a very good probability that its customer retention will continue to be near 100 per cent, unless a OneBridge customer is acquired by another pipeline operator which mandates adoption of its own integrity management processes. As of today, the company knows of no customer that intends to stop using its solutions.
• Management estimates that the CIM platform is currently being used for approximately 20 per cent of the piggable pipeline infrastructure in the United States -- that is, approximately 150,000 of 660,000 piggable pipeline miles are now under multiyear SaaS agreements with OneBridge. The balance of piggable miles is currently managed using legacy systems and processes and, with no known competing cloud solution, OneSoft believes this represents significant future opportunity for the company.
• Management is optimistic that new functionality modules that integrate with the CIM platform, including internal corrosion management (ICM), external corrosion management (ECM), crack management (CM), probabilistic risk management (RM) and geohazard strain management (GS) will be embraced by current and future customers. Certain customers have already added ICM to their annual SaaS renewal purchase orders and others have engaged as private preview users of the modules still under development. Management's optimism is bolstered by expressions of interest from customers and from the formalized steering committee initiated at the October, 2023, user group event, composed of senior industry personnel whose roles generally direct integrity management functions and control the associated budgets.
• Management is pleased with the continued evolution of internal operational processes that occurred during fiscal 2023, including those that optimize efficiencies pertaining to sales, marketing, client support, product development, and financial and corporate initiatives. In 2023, the company's marketing team updated marketing collateral to align with OneSoft's evolving technology and product development, and adopted new taglines -- "Where data and integrity converge," "Integrity management made smarter" and "Visualize. Predict. Mitigate." Sales, marketing and customer support materials and processes have been organized within Wiki libraries, to document and share knowledge, and improve operational and cost-efficiencies. New marketing software was implemented to capture data that assist the company's employees to better understand and serve its stakeholders, including metrics regarding website visitors, unique contacts, blog views, e-mail outreach and gated downloads that track visitors who view white paper and informational videos posted on the company's website. The company's sales, development and customer support teams were reorganized in fiscal 2023 to support additional marketing and sales tactics in fiscal 2024 using new and existing customer success plans and strategic prospect playbooks.
• The company attended several key O&G industry tradeshow and exhibition events during fiscal 2023, including the Pipeline Pigging and Integrity Management (PPIM), the American Gas Association (AGA), the Pipeline Technology Conference in Berlin, Germany and the annual Banff Pipeline Conference, and participated in industry educational events wherein company personnel presented white paper research learnings. Additionally, OneBridge hosted its first annual user group conference, in collaboration with the Microsoft team that focuses on O&G customers. Microsoft considers OneBridge to be a managed partner, and some of its O&G sales team members continue to collaborate with OneBridge personnel to pursue joint sales opportunities involving the company's CIM platform and Microsoft's Azure cloud platform.
• Use of the CIM platform by customers increased in accordance with management's expectations during fiscal 2023, with higher pipeline miles operated by customers and miles under SaaS subscriptions that drove revenue in fiscal 2023. OneBridge onboarded five additional pipeline operators during fiscal 2023, which became new CIM users due to direct sales efforts, or after being acquired by existing customers that use the CIM platform. Some customers expanded their use of the CIM platform to include ICM and other new functionality modules, a trend OneSoft believes will generate additional revenue in future periods.
• The company's development team consisted of 21 employees and a seven-person offshore team as at the end of fiscal 2023. This team released six major CIM platform updates during the year, evolved the ICM, ECM, CM, RM and GS functionality modules, evolved various data science and machine learning projects, and assisted customer service and implementation teams to onboard five new pipeline operators during fiscal 2023. During fiscal 2023, this team addressed 221 user stories, 180 bugs and 2,496 commitments for customers, and upgraded the CIM platform to .NET 6 status. One new customer presented an atypical challenge, requiring more than 18,000 pipeline data miles to be ingested into CIM, "go live" with the CIM platform within a six-month period (which was essentially completed in early 2024), and the customization of various integrations between CIM and the customer's internal systems.
• The company's client services team addressed 17 projects during fiscal 2023, primarily involving six clients and five core CIM platform implementations, collectively involving 15 divisional operators and more than 700 pipeline systems. Projects included work associated with integrity management and compliance, geographic information system (GIS) integrations, loading of more than 3,700 ILI assessments and 67 million anomalies into CIM, migrating data from legacy systems into CIM, integrations with various customer software applications, and training.
• The company's employee roster continued to increase, with 20 new hires completed during the past 20 months, and employee retention remains high. Development staff trained in new Microsoft technologies and systems during fiscal 2023 and this, together with OneSoft's new customer additions, resulted in the company earning the Microsoft Solutions Partner designation for digital and app innovation (Azure). This provides the company access to accelerated support status and discounted or free internal user rights for a wide swath of Microsoft products.
• OneSoft also successfully completed the second audit of its SOC (service organization control) 2 Type 2 certification process, which provides independent verification that OneSoft is compliant with key trust service principles, including security, availability, processing integrity, confidentiality and privacy (as defined by the American Institute of CPAs (certified public accountants)). SOC 2 Type 2 certification is recognized as an important accreditation of a company's trustful capability, a key vendor requirement of customers and prospective customers worldwide.

Fiscal 2023 corporate update:

• Management attended several in-person investor events in Canada and the United States during fiscal 2023, and hosted numerous one-on-one meetings with current and prospective shareholders of OneSoft. The company renewed the appointment of Sophic Capital Inc. to provide investor relations and capital markets advisory services for fiscal 2024.
• In fiscal 2022, the OneSoft board of directors and management took steps to review and implement succession plans for the company's senior executive management team and board of directors, which initiatives are continuing. Two individuals relinquished their roles as directors in 2023 and one new director has been onboarded to date.
• During fiscal 2023, management and directors continued to consider alternatives that can potentially advance the company, including pursuit of organic revenue growth initiative and M&A scenarios that might further accelerate company advancement and revenue growth, with the overall objectives of increasing shareholder value and positioning the company to better serve all of its stakeholders.

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 Canadian and U.S. 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.