Mr. Dorian Banks reports

LOOKING GLASS LABS REPORTS FINANCIAL RESULTS FOR THE SECOND FISCAL QUARTER OF 2023

Looking Glass Labs Ltd. has filed its unaudited financial results for the second quarterly period ending Jan. 31, 2023, of the company's 2023 fiscal year, the highlights of which are included in this news release. The full set of consolidated financial statements, and management discussion and analysis can be viewed by visiting the company's website or its profile page on SEDAR.

Financial highlights (all amounts expressed in Canadian dollars unless otherwise noted):

• Total revenues for the six-month period ended Jan. 31, 2023, were $210,004, as compared with $6,808,688 for the same period of the prior year, which was primarily due from the lack of revenue from NFT (non-fungible token) sales as well as a decrease in design services income and royalty income; total revenues for the three-month period ended Jan. 31, 2023, were $72,938, as compared with $311,825 for the same period of the prior year, which was due to the aforementioned reasons;
• Gross profit for the six-month period ended Jan. 31, 2022, was $187 612, as compared with $6,462,914 for the same period of the prior year; gross profit for the three-month period ended Jan. 31, 2023, was $52,065, as compared with $287,124 for the same period of the prior year, due to the aforementioned reasons;
• Net comprehensive loss for the six-month period ended Jan. 31, 2022, was $8,443,726, as compared with net comprehensive income of $2,270,315 for the same period of the prior year, primarily due to the impairment of goodwill, an increase in stock-based compensation and lower revenues; net comprehensive loss for the three-month period ended Jan. 31, 2023, was $6,093,869, as compared with a net comprehensive loss of $3,500,385 reported for the same period of the prior year, due to the aforementioned reasons;
• Net loss per share for the six-month period ended Jan. 31, 2023, was six cents on both a basic and diluted basis, as compared with net income per share of three cents and two cents on a basic and diluted basis, respectively, for the same period of the prior year; net loss per share for the three-month period ended Jan. 31, 2023, was four cents on both a basic and diluted basis, as compared with net loss per share of three cents for the same period of the prior year; and
• Total assets for the period ended Jan. 31, 2023, were $5,448,039 as compared with $7,600,964 for the period ended July 31, 2022, which was mainly attributable to a change in the amount of goodwill.

Management commentary

Dorian Banks, chief executive officer of Looking Glass Labs, said: "The company navigated some challenging economic and industry conditions in the second quarter of 2023 and across the first half of its fiscal year. I am excited with what we've done to evolve our Pocket Dimension metaverse offering, and am proud of our team for continuing to execute on Web 3.0 design work for, and provide associated services to, third parties." Mr. Banks added, "My outlook for the company is optimistic as we continue to seek accretive partnerships and revenue opportunities into the future."

Subsequent highlighted events (all amounts expressed in Canadian dollars unless otherwise noted):

• Set launch date for beta release of Pocket Dimension metaverse assets (Feb. 17, 2023): The company announced that it had scheduled the launch date for the beta release of its Pocket Dimension (PD) (collectively, PD Beta) metaverse offering for Feb. 21, 2023. PD Beta was developed in association with the company's partner, Starloop Studios.

About Looking Glass Labs Ltd.

Headquartered in Vancouver, B.C., Looking Glass Labs (LGL) is a leading Web3 innovation platform specializing in consumer engagement applications to leverage immersive metaverse environments, play-to-earn tokenization and blockchain monetization strategies. Its leading brand, House of Kibaa (HoK), designs and curates a next-generation metaverse for 3-D assets, which allows functional art and collectibles to exist simultaneously across different NFT blockchain environments. HoK has successfully released digital assets to include GenZeroes, which sold out in just 37 minutes for total proceeds to LGL of $6.2-million, in addition to a perpetual 5-per-cent royalty stream on secondary market sales.

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