Mr. Nick Forbes reports

TITAN LOGIX CORP. REPORTS FISCAL 2023 Q3 FINANCIAL RESULTS

Titan Logix Corp. has released its results for the third quarter ended May 31, 2023.

Q3 fiscal 2023 highlights:

• Revenues for the third quarter of fiscal 2023 improved over the comparative prior period as the demand for the GWR product line continued to strengthen, resulting in a $335,730 or a 26-per-cent increase in the company's revenues for the third quarter. Revenues in the third quarter were $1,627,934, compared with the $1,292,204 recorded in the comparative prior period. This increase in demand for the GWR was due to an improvement in the global supply chain, and a persistent backlog for new tanker builds in crude oil, recycled oil and aviation refuelling sectors.
• Gross profit for the third quarter of fiscal 2023 was $777,794 or 48 per cent of revenue, compared with $713,497 or 55 per cent of revenue in the comparative prior period. The 7-per-cent reduction in gross profit as a percentage of sales resulted from an increase in unit manufacturing input costs due to inflationary price increases in components.
• Total expenses in the third quarter of fiscal 2023 increased by $324,018 to $890,091 as compared with $566,073 in the comparative prior period. This increase in total expenses was primarily due to an increase in development investments to promote future growth and the expansion of the sales and marketing team to grow the customer base and support new product investments.
• During the fiscal quarter the development team focused on the expansion of its current GWR platform with a new feature supporting a multicompartment unit. This new feature will potentially expand the company's offering to a new market, tankers with more than two storage compartments, a common configuration in recycled oil and refined fuel markets.
• In the third quarter of fiscal 2023, the company reported an operating loss before other items of $112,297, compared with operating income of $147,424 in the comparative prior period. The operating loss before other items for the third quarter of fiscal 2023 was due to the reduction in the gross profit percentage combined with the increase in total expenses.
• Net loss after income taxes for the third quarter of fiscal 2023 amounted to $412,271, compared with net earnings after taxes of $403,414 in the comparative prior period. The increase in the net loss was largely due to the recording of a $460,750 unrealized loss on the investment in Bri-Chem Corp. common shares, slightly offset with finance income of $179,531, combined with the operating loss before other items of $112,297. At Aug. 31, 2022, the company recorded a $732,250 unrealized gain on its investment in Bri-Chem common shares.

"We are keeping up with the steady demand for overfill protection and continuous level measurement in crude and recycled oil, and aviation refuelling markets leading into the fourth quarter," says chief executive officer Nick Forbes. "Our product development investment positions us for growth into new market opportunities in the upcoming fiscal year."

The company's unaudited condensed consolidated interim financial statements and the management's discussion and analysis (MD&A), which includes the company's business outlook, for the third quarter ended May 31, 2023, are available on SEDAR and on the company's website.

About Titan Logix Corp.

For over 25 years, Titan Logix has designed and manufactured mobile liquid measurement solutions to help businesses reduce risk and maximize efficiencies in bulk liquids transportation. Titan's TD series of tank-level monitors are a market leader in mobile fluid measurement, and are known for their high level of accuracy, rugged design and solid-state reliability. The company's solutions are designed for hazardous and non-hazardous applications, and it serves customers in a wide range of applications, including petroleum, environmental solutions, chemical and agriculture.

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