Mr. Ghislain Lemire reports

URBANIMMERSIVE REPORTS FINANCIAL RESULTS FOR ITS THIRD QUARTER OF 2023

Urbanimmersive Inc. has released financial results and presents business highlights for its third quarter ended June 30, 2023. The interim condensed financial statements and related management's discussion and analysis (MD&A) can be viewed on SEDAR+.

Highlights:

• For its third quarter ending June 30, 2023 (Q3 2023), the company generated total revenues of $2,683,000 compared with $2,850,000 for Q3 2022, a decrease of $167,000 or 5.8 per cent. Software revenues are up $46,000 or 7.7 per cent.
• For the nine-month period ended June 30, 2023, the company generated revenues of $8,239,000 compared with $6,027,000 for the nine-month period ended June 30, 2022, an increase of $2,212,000 or 37 per cent.
• In June, 2023, the company completed a private placement of 11,538,461 units at a price of 6.5 cents for net proceeds of $750,000. Each unit consists of one common share of the company and a warrant entitling the holder to purchase one additional common share of the company at a price of 10 cents per share until June 27, 2026.
• In June, 2023, the company signed an amendment to its banking agreement with its financial institution to restructure its two main term loans (balance of $2.6-million) and thus was able to obtain 1) a capital repayment holiday until February, 2024, inclusively; and 2) agreement that a portion (5.50 per cent) of its interest normally payable monthly be instead capitalized to the loans until their maturity in June, 2024.
• In June, 2023, the company also reached an agreement with its main financial partner and shareholder to restructure its promissory note (face value of $6.5-million) related to the acquisition of HomeVisit so that 50 per cent will be repayable no later than Oct. 19, 2027, and 50 per cent repayable no later than Oct. 19, 2030. In addition to the annual interest of 7.50 per cent which is capitalized to the promissory note, the previously invoiced net transition costs of approximately $300,000 (U.S.) will also be capitalized to the promissory note. This agreement is, among other things, subject to the finalization of the legal documentation and any other conditions required by the regulatory authorities.

"During the most recent quarter, we faced significant challenges and are proud of the progress made so far. Real estate market conditions have remained particularly difficult and we also had to manage the loss of clientele in some of our photography agencies due to breach of non-competition and non-solicitation agreements in place by some of our former managers. However, the financial measures taken recently, such as the optimization of our operations in connection with the integration of our recently acquired businesses, including a significant reduction in our work force, the $750,000 financing completed last June and the remodelling of our long-term debts, should together enable the company to free up nearly $4-million in cash over the next 12 months and thus rebalance our working capital and strengthen our financial position while remaining resolutely focused on the growth of our business. At the same time, we continued to develop several growth projects that we expect to launch in the upcoming months," said Ghislain Lemire, president and chief executive officer of Urbanimmersive.

The company has issued 507,115 shares at a price of 6.5 cents to management and employees as part of their compensation.

Investor video conference call

Urbanimmersive will be hosting a video conference to discuss its 2023 third quarter results and answer questions at 1 p.m. (ET) on Friday, Aug. 25, 2023.

About Urbanimmersive Inc.

Urbanimmersive develops and commercializes real estate photography technologies and services focused on redefining industry visual content standards. The company's all-in-one platform enables high-volume photography businesses to increase operational productivity delivering feature-rich 3-D tours and floor plans, leading-edge property websites, and high-resolution artificial intelligence-indexed images. The company's operating segments include software (software-as-a-service), 3-D photography equipment and, in a growing number of North American cities, technology-powered real estate photography service business units leading the industry photo-shoots standards transformation.

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