Mr. Greg Wong reports

RIWI RELEASES 2023 AUDITED FINANCIALS AND ANNOUNCES ACQUISITION OF THE MAJORITY OF COOLTOOL ASSETS

Riwi Corp. has released its financial results for the year ended Dec. 31, 2023. All figures are reported in U.S. dollars unless otherwise indicated. Riwi's financial statements are prepared in accordance with international financial reporting standards.

Riwi highlights for the year ended Dec. 31, 2023:

• Riwi earned $4,184,877 in revenues in the fiscal year ended Dec. 31, 2023, compared with $2,787,380 for the fiscal year ended Dec. 31, 2022, an increase of 50.1 per cent. The company's 2023 revenue consisted of $1,493,631 in transaction revenue, $1,341,418 in recurring revenue and $1,349,828 in project-based revenue. Riwi experienced an operating loss of $601,361 and a net loss of $813,341 (net loss was largely due to a non-cash goodwill impairment charge related to the Research on Mobile acquisition in 2022) for the fiscal year ended Dec. 31, 2023, as compared with an operating loss of $1,730,567 and a net loss of $1,691,209 for the fiscal year ended Dec. 31, 2022, an improvement of 65.2 per cent and 51.9 per cent, respectively.
• Riwi won 60 new contracts in 2023, including 29 new customers that had not done business with Riwi before. These customers span all of its customer segments.
• The Riwi platform had several significant enhancements in 2023, including the launch of Riwi Communities -- the company's trusted and validated partner network -- which enables Riwi to deliver more types of survey data, including business-to-business surveys, health-care-focused surveys and other highly targeted audience surveys, with such targeting capabilities being the key initiative accelerating Riwi's new sample-only business. The Riwi platform also integrated new research marketplaces such as Toluna and Morning Consult, helping increase the daily volume of completed survey responses from 1,800 per day in December, 2022, to approximately 7,000 per day at the end of December, 2023.
• Riwi strengthened its board of directors in 2023 by conducting a board refresh. Three new board members were added, including Greg Wong, current Riwi chief executive officer, David Kincaid, founder of Level 5 Consulting and a member of the Marketing Hall of Legends in Canada, and Leonard Murphy, market research subject matter expert and chief adviser at Greenbook. These new board members bring significant experience in Riwi's key strategic areas of focus, and will help support management priorities, including growth and strategic partnerships. Continuing on as board members and providing Riwi with consistency are Neil Seeman, Riwi founder, and Annette Cusworth, now current chairperson of the Riwi board.
• Riwi technology and Riwi data were referenced extensively in 2023 across highly respected organizations and in media sites such as the Bank of Canada, Canadian Broadcasting Corp., Public Policy Forum, the World Bank, AidData, The Journal of Social Psychology, Asia Times, Australian Strategic Policy Institute, and Poverty and Equity Global Practice.

Riwi acquires assets of CoolTool Inc.

Riwi announces the acquisition of the majority of the assets of CoolTool, a leading survey and non-conscious data collection platform. CoolTool has been used by leading global brands to test media, marketing campaigns and ad tests. CoolTool will provide Riwi customers with the ability to purchase software-as-a-service subscriptions for both the platform's standard survey functionality and its advanced biometric and non-conscious functionality, such as eye tracking and facial recognition with artificial-intelligence-based analysis. This functionality will become a central part of the Riwi platform and a significant differentiator in the marketplace.

CoolTool chief executive officer and founder Dmitry Gaiduk will remain with Riwi and lead the product management unit within Riwi. Mr. Gaiduk is considered a visionary in the market research sector and a leader in AI and non-conscious measurements. Mr. Gaiduk will provide Riwi with both a strong product management methodological approach, and will drive innovation in all parts of its platform and business processes.

The integration of CoolTool into the Riwi platform and the consolidation of the technology platforms are expected to start in the second quarter of 2024 and be completed some time in 2025.

Transaction details

Under the terms of the arm's-length transaction, a total purchase consideration of $292,000 (U.S.) of cash will be paid by Riwi to CoolTool in connection with the closing of the transaction. In addition, CoolTool may be entitled to receive additional earnout payments subject to the satisfaction of certain revenue targets, as well as customer acquisition targets for the 2024, 2025 and 2026 Riwi fiscal years.

"We began to see the results of our strategy take shape in 2023. As we look into 2024 and beyond, success will be setting the right balance between continued investments in our data and platform with the need for profitable growth," said Mr. Wong. "We are also thrilled to welcome the CoolTool team members into Riwi as they will expand our leadership in the global market research platform sector and drive additional long-term recurring revenues."

"This strategic acquisition combines our advanced tools for attention tracking, emotional measurement and implicit perception with Riwi's unparalleled ability to gauge consumer and citizen sentiment globally," said Mr. Gaiduk. "This business combination will not only expand our market presence and accelerate our growth but also reaffirm our commitment to enhancing decision-making, digital engagement and deepening our understanding of consumer behaviours, focusing on the whys behind consumer decisions."

Riwi's audited financial statements and management's discussion and analysis for the year ended Dec. 31, 2023, are available on Riwi's website and on SEDAR+.

About CoolTool Inc.

CoolTool is a leading research technology firm dedicated to transforming consumer insights with advanced artificial-intelligence-powered tools and cutting-edge neuromarketing techniques. Specializing in a holistic combination of conscious and non-conscious measurements, CoolTool's innovative platform solutions provide deep insights into the whys of consumer decisions. These insights enable the creation of products, experiences and media that not only empathize with but also deeply resonate with users and consumers, thereby enhancing market success and boosting consumer satisfaction.

About Riwi Corp.

Riwi is a global trend-tracking and prediction technology firm. On a monthly or annual subscription basis, Riwi offers its clients tracking surveys, continuous risk monitoring, predictive analytics and ad effectiveness tests in all countries -- without collecting any personally identifiable data.

We seek Safe Harbor.