Mr. Nick Forbes reports

TITAN LOGIX CORP. REPORTS FISCAL 2023 FINANCIAL RESULTS

Titan Logix Corp. has released its results for the 12- and three-month periods ended Aug. 31, 2023.

2023 highlights

• Revenues for fiscal 2023 increased 44 per cent over the comparative prior year and 76 per cent off the pandemic low in fiscal 2021. Tanker OEMs (original equipment manufacturers) are at peak production capacity resulting in elevated demand for the company's core product line. Revenues for fiscal 2023 were $6,214,348, compared with $4,328,588 in the previous year, resulting in a $1,885,760 increase. The backlog for new tanker builds in crude oil, recycled oil and aviation refueling sectors is anticipated to be a source of continued revenue.
• Gross profit for fiscal 2023 improved 29 per cent to $3,083,652 or 50 per cent of revenue compared with $2,392,764 or 55 per cent of revenue for fiscal 2022. The $690,888 improvement in gross profit was the result of greater volume of sales offset by an increase in unit manufacturing input costs due to inflationary price increases in components.
• Total expenses in fiscal 2023 increased by $630,515, or 24 per cent, to $3,248,939 as compared with $2,618,424 in fiscal 2022. Increased expenses were $258,000 to support increased activity in our core markets and $372,000 toward developing products for new markets. Increased spending was primarily in employee related costs. During fiscal 2023 engineering activities included development and launch of the multicompartment Finch II to address a common configuration in recycled oil and refined fuels market. The company's sales and marketing spending was primarily focused on servicing the company's core markets and gaining inroads to new markets for the company's product line.
• In fiscal 2023, the company reported an operating loss before other items of $165,287 compared with an operating loss of $225,660 in fiscal 2022. Excluding the aforementioned development costs, the company would have reported an operating profit before other items in the fiscal year.
• Net earnings after other items and income taxes for fiscal 2023 amounted to $82,934 compared with net earnings after taxes of $1,125,861 in fiscal 2022. This reduction in net earnings was largely due to the recording of a $339,500 unrealized loss on the investment in Bri-Chem Corp. common shares compared with an unrealized gain of $732,250 in fiscal 2022, for a combined year-over-year impact of $1,071,750 on net earnings. The company invested $771,250 in fiscal 2022 on Bri-Chem Corp common shares and based on the market price as of Aug. 31, 2023, the fair value of its investment in Bri-Chem shares was $1,164,000.

"Two thousand twenty-three marks another strong year for Titan," says chief executive officer Nick Forbes. "We were successful in stabilizing the business across our core markets, providing a foundation to begin executing on our long-term growth strategy. Our investments in product innovation, sales and marketing initiatives, and key hires will enable us to penetrate new markets and strengthen Titan's value to the tanker truck market."

The company's audited consolidated annual financial statements and the management's discussion and analysis (MD&A) which includes the company's business outlook, for the full fiscal and three-month periods ended Aug. 31, 2023, are available on SEDAR+ and 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.

Founded in 1979, Titan Logix is a public company listed on the TSX Venture Exchange and its shares trade under the symbol TLA.

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