Mr. Nick Forbes reports

TITAN LOGIX CORP. REPORTS ITS FISCAL 2024 SECOND QUARTER FINANCIAL RESULTS

Titan Logix Corp. has released its interim results for the three- and six-month periods ended Feb. 29, 2024.

"We are seeing steady demand for our products in the crude and used oil markets, focusing our sales and marketing efforts on gaining market share with existing fleet turnover and new developing new fleet accounts," said Nick Forbes, chief executive officer at Titan Logix. "We are also excited to be gaining traction in the fuels market, and we will continue to focus on our diversification strategy over the coming quarters.

"The second quarter results reflect a stable production rate from tanker [original equipment manufacturers], mirroring the activity seen in the first fiscal quarter. We expect a similar level of demand in the third quarter for Titan's TD100 series products in the crude and used oil segments. We also have several new business opportunities in the refined fuel and chemical market segments, as a result of our key business development initiatives.

"Titan has been focusing on business development activities with key players in the refined fuels market. Undertaking several pilot trials in the third and fourth quarter of this year, the pilot trials are expected to take three to five months, equipping one to five trucks with Titan TD100 systems and Titan's rack control module.

"Longer term, our product development initiatives are focused on a next generation of product that will be cost-effective and designed to fit multiple end-use applications. As part of our technology modernization strategy, we are conducting pilot trials with T-Connect, Titan's first mobile application that works on iOS and Android devices. T-Connect is a software tool that will drive adoption of the TD100 system in new and existing market segments. We currently have eight fleet customers piloting T-Connect, and we expect to scale this number over the course of the third and fourth quarter in fiscal 2024. T-Connect underscores Titan's commitment to being the market leader in advanced technology for tanker trucks.

"Our investment strategy is to commit the necessary resources to penetrate new mobile liquid market segments and the development of value-added products and software solutions to these market segments. The company invests its non-operating cash reserves in conservative interest-bearing accounts and marketable securities. Acquisition opportunities are considered where it complements our growth strategy or enables the monetization of our connected strategy."

Second quarter fiscal 2024 highlights:

• Revenues for the second quarter of fiscal 2024 increased by 15 per cent to $1,750,979 compared with $1,521,908 in the second quarter of fiscal 2023. Through six months, the company's revenues have increased by 8 per cent to $3,264,837 compared with $3,025,028 through the six months of fiscal 2023. The company continues to see increased demand for its core product line as tanker OEMs remain at peak production capacity.
• Gross profit increased to 822,546 or 47 per cent of revenue in the second quarter of fiscal 2024 compared with $799,152 or 53 per cent of revenue in the second quarter of fiscal 2023. During the six-month period, gross profit decreased to $1,602,575 or 49 per cent of revenue compared with $1,635,773 or 54 per cent of revenue. The decrease in gross margin resulted from an increase in unit manufacturing input costs due to inflationary price increases in components.
• The company incurred product research and development expenses in the current quarter of $247,463 on activities to support the company's diversification and growth into new markets compared with $34,698 incurred in the same period of fiscal 2023. During the six-month period, product research and development expenses increased to $513,121 compared with $48,704 incurred in the comparative period. In fiscal 2023, the company unveiled a strategic growth plan focused on updating its core product line and diversifying its business.
• The company's net earnings increased by $154,480 to $244,716 in the second quarter of fiscal 2024 compared with net earnings of $90,236 in the second quarter of fiscal 2023. Through six months, net earnings decreased by $659,816 to a net loss of $159,896 compared with net earnings of $504,920 in fiscal 2023. The decrease in net earnings over the comparative period was driven by increased product research and development expenditures on its strategic growth initiatives and non-cash fair value losses recorded in other non-operating items, specifically an unrealized loss of $303,125 recorded in the current fiscal year on the company's investment in shares of Bri-Chem Corp. compared with an unrealized loss of $72,750 recorded in the same period of fiscal 2023.
• The performance of the core business improved in the second quarter with reported operating EBITDA (earnings before interest, taxes, depreciation and amortization) of $275,492 in the second quarter of fiscal 2024 versus $224,630 in the comparative period. Through the six months, operating EBITDA decreased by $112,901 to $481,372 compared with $594,273 for the six months ended Feb. 28, 2023.

The company's interim consolidated financial statements and management's discussion and analysis, which include the company's business outlook, for the three- and six-month periods ended Feb. 29, 2024, 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 Logix'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. Its solutions are designed for hazardous and non-hazardous applications, and the company 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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