Mr. Jonathan Hoyles reports

GLANCE TECHNOLOGIES REPORTS SECOND QUARTER 2019 RESULTS

Glance Technologies Inc. has released financial results for the three- and six-month periods ended May 31, 2019.

Overview

Glance's net loss was ($6,826,000) or (five cents) per share in second quarter 2019. The adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for second quarter 2019 was a loss of ($1,614,000) compared with a loss of ($2.75-million) in second quarter 2018. While Glance continued to decrease its overhead expenses, a significant factor of this net loss was a decrease in the market value of Glance's marketable securities of $3.6-million and the accounting for a one-time R&D (research and development) expense related to the completion of Glance's transaction with Fobisuite Technologies Inc. of $1.5-million. Glance's working capital as at May 31, 2019, was $6,947,000, and it has no long-term debt.

During the quarter, Glance rolled out Real-Time Bill to nine merchants, including Steamworks and the Rogue Bar chain, the Mr. Mike's Steakhouse Casual Restaurant chain, and popular Vancouver restaurants, such as Fable Diner, Dunn's Famous Restaurant and Mary's on Davie. Glance has received strong interest from many of its signed merchants and new prospects to adopt its new features. Glance believes its new capabilities significantly improve the value proposition of its platform to both consumers and merchants.

"Revenue for the second quarter of 2019 was unsatisfactory," said Jonathan Hoyles, Glance's interim chief executive officer. "On the positive side, we expect that the renewed efforts of our R&D, marketing and sales teams that are currently being undertaken will be reflected in our operating results in the fourth quarter of 2019. We have significant working capital and no long-term debt. We launched nine locations with our new Real-Time Bill product in this past quarter, and continued progress is being made in both converting existing and signing up new merchants with our new product features. We place great confidence in our team as we look to grow and diversify sources of revenue. This confidence is echoed by our customers."

Warren Goss, vice-president of operations, Rammp Hospitality Inc., had this to say about Glance Pay: "Glance has helped Mr. Mikes Steakhouse Casual in our core philosophy of delivering the best experience for our guests. Having been a long-standing partner with Glance allows Mr. Mikes to benefit from their technology and introduce valuable new features, such as Real-Time Bill. Our guests can now access their bill from their table and pay when they are ready, regardless of how busy their server might be. Glance is in line with how we incorporate advancements in our industry to stay competitive."

Carl McCreath, president of restaurant operations, Steamworks group of companies, said this about Glance: "The increase in labour costs has been a very real problem for the restaurant industry. Glance has been a true partner to the Steamworks group of companies, and has delivered through genuine service and innovation. As we transitioned from Glance's PayByPhoto technology to Real Time Bill, we have seen an even bigger increase in guest adoption, guest satisfaction and time savings for our servers. Glance Pay continues to make a positive impact on my bottom line."

Second quarter 2019 financial highlights (all figures are rounded to the nearest thousand):

• Comprehensive loss was ($6,826,000) or (five cents) per share, compared with a comprehensive loss of ($4,567,000) or (three cents) per share in second quarter 2018. This increase of 52 per cent is primarily due to the unrealized gain on marketable securities of $3.6-million and the finalization of the Fobisuite licensing agreement of $1.5-million, which was expensed in the current quarter.
• Cash utilized in operating and investing activities in second quarter 2019 was $1.17-million compared with $3.25-million in second quarter 2018, representing a 64-per-cent decrease and continued commitment to the company's overall efficient spend.
• Revenue of $44,000 in fiscal 2019 decreased 81 per cent from $229,000 in second quarter 2018. As anticipated, licensing revenues have fluctuated significantly due to changes made to existing licence agreements. A review was also carried out over the recognition periods of the licensing agreements.
• Working capital at May 31, 2019, was $6,947,000 (Nov. 30, 2018: $6,962,000) and no long-term debt (nil at Nov. 30, 2018).
• Over all, the company continues to work to reduce costs in many categories and has made significant changes to better utilize its cash resources going forward. Costs incurred on operating activities were approximately $3.2-million in second quarter 2019, compared with $3.9-million in second quarter 2018. Included in the second quarter 2019 operating activities is $1.5-million for the Fobisuite licence and the remaining $1.7-million is other operating costs. Glance intends to continue to spend efficiently during the rest of the fiscal year.

Second quarter 2019 highlights:

• Launched the Real-Time Bill feature at more restaurants, including Steamworks and the Rogue Bar chain, the Mr. Mike's Steakhouse Casual Restaurant chain, and popular Vancouver restaurants, such as Fable Diner, Dunn's Famous Restaurant and at Mary's on Davie;
• Previewed its new Order-From-Table feature;
• Amended an agreement to complete its transaction with Fobisuite Technologies;
• Entered into a joint venture with Kinect Technologies Inc. to form Converge MobiSolutions Inc.

The company's complete financial results for the second quarter of 2019 are available in the company's condensed consolidated interim financial statements and management's discussion and analysis, each of which is filed with Canadian securities regulators at SEDAR.

Subsequent events

The following subsequent events occurred following the end of the second quarter of 2019:

• On June 6, 2019, it was announced that Gary Zhang would be replacing Angela Griffin as Glance's chief technology officer.
• On June 12, 2019, Loop Insights Inc. announced the completion of its reverse takeover and closing of an oversubscribed private placement at 80 cents per unit. Glance holds one million common shares of Loop.
• On June 12, 2019, it was announced that Jonathan Hoyles would be replacing Desmond Griffin as Glance's interim chief executive officer.
• On June 17, 2019, it was announced that Issa Nakhleh would be replacing Laura Burke as Glance's chief financial officer.
• On June 19, 2019, Loop started trading on the TSX Venture Exchange under the symbol MTRX.

Outlook

The company's strategic priorities for fiscal 2019 include:

• Develop growing and diversified sources of revenue;
• Increase monthly recurring revenue through a tiered software-as-a-service (SaaS) subscription model by adding new merchants and consumers, and generate new revenue from advertising, promotions and consumer fees for premium features;
• Roll out Glance's new Real-Time Bill feature broadly to existing and new customers;
• Launch Order-From-Table and Pre-Order;
• Continue to develop Glance's Order-From-Bar product;
• Expand the company's footprint through both direct sales and joint efforts with the company's business partners;
• Investigate new geographic markets for Glance Pay;
• Continue to search for logical extensions and applications of the company's technology.

International financial reporting standards

The operational and financial information in this release is based on the consolidated figures in accordance with international financial reporting standards (IFRS), and with the exception of information on investments and behaviour of markets, quarterly financial statements are reviewed by the company's independent auditor.

About Glance Technologies Inc.

Glance owns and operates Glance Pay, a streamlined payment system that revolutionizes how smart phone users choose where to shop, order goods and services, make payments, access digital receipts, redeem digital deals, earn great rewards, and interact with merchants. Glance offers targeted in-app marketing, geo-targeted digital coupons, customer feedback, in-merchant messaging and custom reward programs. The Glance Pay mobile payment system consists of proprietary technology, which includes user apps available for free downloads in iOS (Apple) and Android formats, merchant manager apps, a large-scale technology hosting environment with sophisticated anti-fraud technology, and lightning-fast payment processing.

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