Mr. Eric Entz reports

CLARIFYING NEWS RELEASE AND ANNOUNCES DTC ELIGIBILITY

Impact Analytics Inc. has clarified certain statements contained in its news releases dated Nov. 7, 2023, Dec. 5, 2023, and Jan. 12, 2024.

On Nov. 7, 2023, the company announced that it continues to accelerate the expansion of its business lines to include patentable risk management and assessment models underpinned by artificial intelligence. The company would like to reiterate that all of its current product and service offerings are still under development, and that it will provide further updates as developments materialize. The company would also like to provide an update regarding the milestone schedule and development plan under the company's development service agreement with Research Laundry LLC. Research Laundry is actively developing the company's product and service offerings, and is aiming to achieve, or assist the company in achieving, the following milestones:

• Filing of a provisional patent relating to Research Laundry's work product;
• The completion of the minimum viable product relating to the work product;
• The company raising $1-million by way of the issuance of equity securities, debt or other financial instruments, following the completion of the MVP;
• The completion of the beta launch of the work product.

Each of the milestones above would entitle Research Laundry to 250,000 common shares in the capital of the company or restricted share units, a combination thereof, subject to applicable securities laws and the policies of the Canadian Securities Exchange. There is no certainty that any of the milestones described above will be achieved.

Under the terms of the development agreement, the company will own the rights to any intellectual property developed by Research Laundry in connection with the work product.

On Dec. 5, 2023, the company announced that it has secured long-term, privacy-centric data centre co-location and hosting solutions pursuant to an agreement with Hurricane Electric LLC. The company would like to clarify that, at the time of the announcement, it had reached an agreement in principle with Hurricane Electric for the provision of the co-location and hosting services, which has now been finalized into a master service agreement with Hurricane Electric. Pursuant to the MSA, Hurricane Electric has agreed to provide the co-location and hosting services until such services are terminated by either party.

On Jan. 12, 2024, the company announced that it had closed the final tranche of a private placement for $1-million in proceeds. The company would like to clarify that the private placement generated aggregate gross proceeds of $752,070 through the sale of 1,504,140 units of the company at a price per unit of 50 cents per unit. The company expects to use the proceeds from the private placement for product development and working capital purposes.

Depository Trust Company eligibility

The company further announces that the company's common shares are eligible for electronic clearing and settlement through the Depository Trust Company in the United States.

DTC, a subsidiary of the Depository Trust & Clearing Corp., oversees the electronic clearing and settlement of publicly traded companies in the United States. Securities eligible for electronic clearing and settlement through DTC are termed as DTC eligible. Such eligibility is anticipated to streamline trading processes and boost liquidity for the company's common shares in the United States.

Eric Entz, the company's chief executive officer, commented: "Receiving DTC eligibility exemplifies the company's dedication to enhancing visibility and accessibility for its shareholders in the United States, facilitating Impact Analytics to broaden its presence within the global investment community. This also streamlines trading processes, benefiting a broader spectrum of investors with increased efficiency and seamlessness."

DTC eligibility brings advantages to current investors, including enhanced liquidity and faster execution speeds, while also welcoming new investors who were previously restricted from acquiring its common shares.

About Impact Analytics Inc.

Impact Analytics is a risk assessment, data intelligence and financial service platform powered by artificial intelligence. The company is building a proprietary product stack to optimize and streamline financial decision making for enterprises and individuals.

We seek Safe Harbor.