Mr. Rich Wheeless reports

PARCELPAL LOGISTICS INC. REPORTS RECORD FIRST QUARTER 2023 RESULTS HIGHLIGHTED BY REVENUE GROWTH OF 11% AND CONTINUED SOLID MARGINS

Parcelpal Logistics Inc. has released its record Q1 2023 financial results, highlighted by revenue growth of 11 per cent (to approximately $3-million) and continued solid margins. It is important to note that this was the company's third-largest quarter of gross revenues in the history of the company, with the largest being Q4 2022 (which was $3.4-million). As previously noted, Q1 has historically been one of Parcelpal's slowest quarters of the year, so the results of this quarter bode well, and the company anticipates the uptrend to continue moving forward.

Overview

In Q1 2023, the company achieved its third-largest quarter of revenue ever, which was driven by revenue growth of 11 per cent to approximately $3-million (up from $2.7-million in Q1 2022). Parcelpal's gross margins for Q1 were a solid 12.1 per cent (compared with 15.4 per cent in Q1 2022). Additionally, the company had a net loss of $967,320 compared with Q1 2022 which was $359,215. It is important to note that the majority of the net loss in Q1 2023 was due to non-cash-related items, such as amortization and one-time share issuances.

Additionally, Parcelpal is very pleased with the positive trends in its business operations in the United States, which are nearly break-even, and it expects it to be operationally net profitable beginning in June and moving forward. In Q1 2023, of the $967,320 net loss, the U.S. portion of the business was responsible for only $63,970 of this loss, despite representing 56 per cent of the company's revenue in Q1 (and currently now generating approximately 60 per cent of total revenue).

Parcelpal's revenue growth and continued solid margins are, in large measure, driven by its expansion into the United States, which is the world's largest consumer market.

Parcelpal's chief executive officer, Rich Wheeless, stated: "The actions we have taken to grow our revenue and solidify our customer base have placed our company in a better position to deliver value to our customers. We still have more work to do, and we will continue to take actions to strengthen our core business as well as our shareholder value. Additionally, I am extremely excited about our refocus back into the technology side, including our most recently announced partnership with Fobi AI, while preparing to launch our new and improved app in 2023. This is expected to create additional revenue generating opportunities for us."

Q1 2023 financial highlights

March 31, 2023, compared with March 31, 2022 -- financial highlights:

• Record revenue in Q1 2023 and growth of 11 per cent to $2,965,043 (up from $2,673,673 in Q1 2022). This represents the company's third-largest revenue quarter since inception (Q4 2022 of $3.4-million was the largest revenue quarter ever).
• Gross margins in Q1 2023 of 12.1 per cent (down from 15.4 per cent in Q1 2022).
• Management and director fees increased to $214,356 (Q1 2022 -- $126,846) due to one-time compensation share issuances to directors and officers.
• Office and miscellaneous expenses decreased to $175,723 (Q1 2022 -- $464,743) as the company undertook additional cost-cutting measures in an effort to conserve cash and focus on operational growth.
• Cash of $42,953 at March 31, 2023, compared with $76,661 at Dec. 31, 2022, and vehicles and right-of-use assets of $435,448 compared with $507,669 at Dec. 31, 2022.
• During the quarter ended March 31, 2023, the company's net loss was $967,320 (compared with $359,215 in Q1 2022).
• Net cash flows used in operating activities increased to $331,000 in Q1 2023 from $300,000 in Q1 2022.

Q1 2023 highlights:

• On March 14, 2023, the company closed an approximately $406,000 private placement.

Subsequent to the period ended March 31, 2023, a few notable events occurred, including:

• On April 5, 2023, the company announced it has signed a new annual North American licence agreement with Fobi AI to provide Parcelpal with its wallet pass platform and digital ID verification solution, AltID.

Outlook

The company's strategic priorities for the remainder of fiscal 2023 include:

• Continued improvement in operating performance, and continued development and reintroduction of Parcelpal's new and improved technology platform;
• Building an exceptional and world-class brand with a focus on signing additional quality partners;
• Using data, technology and inbound selling to ramp up sales and revenue generation;
• Continued expansion into large markets in Canada, with a focus on further expanding throughout the United States markets, including with new higher-margin customer contracts.

The company's complete quarterly financial results are available in its unaudited financial statements and management's discussion and analysis for the quarter ended March 31, 2023, each of which have been filed with Canadian and United States securities regulatory agencies, and can be found respectively on SEDAR and EDGAR.

The company looks forward to providing additional material updates in the coming days.

About Parcelpal Logistics Inc.

Parcelpal is a Vancouver-based company that specializes in last-mile delivery service and logistics solutions. The company is a customer-driven, courier and logistics company connecting people and businesses through its network of couriers in major Canadian cities, including Vancouver, Calgary and Toronto, as well as in the western region of the United States. Some of Parcelpal's verticals include pharmacy and health, meal kit deliveries, retail, groceries, and more.

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