Mr. Shafin Tejani reports

VICTORY SQUARE TECHNOLOGIES REPORTS 2023 Q2 FINANCIAL RESULTS

Victory Square Technologies Inc. has filed its condensed interim consolidated financial statements and interim management's discussion and analysis for the three- and six-month period ended June 30, 2023.

Company

Victory Square is a venture builder that provides investors a liquid way to invest in early-stage technology companies without buying a venture fund that requires accredited investor status or multiyear commitments.

• A diverse portfolio of 25-plus innovative companies from around the world (founders come from: Ireland, Sri Lanka, Bulgaria, Australia, India, Brazil, the Middle East and North America);
• Sectors include: digital health, artificial intelligence, machine learning, blockchain, virtual and augmented reality, gaming and climate tech;
• Owner-operated (approximately 15-per-cent management ownership).

Business model

The Victory Square business model is to buy, build and invest in early-stage technology companies. It spends upward of 48 months with those companies until they are ready to spin off or stand on their own. There are certain unique elements to its business model:

1. It has unparalleled access to start-ups through its internal incubator and international network with over 250-plus founders, investors, tech accelerators and venture capital firms from more than 60 countries.
2. Second, its management team and advisers are actively involved in its investments from incubation through monetization, providing them with financial, operational and strategic support to scale globally.
3. It drives value by monetizing investments and reinvesting the gains in new innovations. The strategy was to build a self-sustaining business.

Financial highlights for the three- and six-month period ended June 30, 2023:

Revenue

Revenue for the three- and six-month periods ended June 30, 2023, was $2,638,892 and $5,516,217 compared with $1,214,783 and $2,231,880 for the comparative periods.

Cost of goods sold

Cost of goods sold for the three and six months ended June 30, 2023, was $1,578,314 and $2,948,453 compared with $577,921 and $1,020,878 for the comparative periods.

Gross margin

The gross margin for the three and six months ended June 30, 2023, was $1,060,578 and $2,567,764 compared with $636,862 and $1,211,002 for the corresponding comparative periods.

Cash and liquid securities were approximately $4,937,216.84.

Unaudited net asset value was approximately $78,681,041 as at June 30, 2023.

"The [key performance indicators] that we track more closely for Victory Square are: cash invested, net asset value, return on invested cash, share price/market cap versus index benchmark, operating costs as a percentage of NAV. Since 2017, we've evaluated over 1,000 companies and start-up ideas, of which 25 have made the cut. We've invested $13-million, and the value of the portfolio sits at $79-million. It has grown from $4-million in 2017 to approximately $79-million today, and our goal is to continue to grow our NAV going forward," said Shafin Diamond Tejani, chief executive officer of Victory Square.

The company trades at an approximately 82-per-cent discount to its current estimated NAV.

This update is made based on Victory Square's established practice of releasing NAV as part of the company's continuing response to shareholder interest in receiving periodic information. NAV is calculated based on the latest audited valuations and third party pricing agency valuations, as well as unaudited management review valuations (based on comparables in the market) as at June 30, 2023.

The company's consolidated financial statements for the three- and six-month periods ended June 30, 2023, along with its management's discussion and analysis are available under the company's profile on SEDAR+.

Notable portfolio highlight: Hydreight Technologies Inc.

Victory Square ownership in Hydreight Technologies approximately 72 per cent as at June 30, 2023.

Hydreight is a telehealth platform that enables flexible home health care, bridging the gap between providers and patients when it comes to compliance and patient convenience. Its platform also empowers nurses, med spa technicians and other licensed health care professionals to deliver services independently, on their own terms and with a flexible schedule, while also having the option to add mobile services to existing location-based operations. Through the app, individuals can schedule services with health care professionals to their home, office, hotel or other places. Hydreight facilitates medical director oversight, liability insurance, competitively priced prescriptions through a 503B licensed pharmacy and more. The platform is easy to use and includes a built-in suite of fully integrated tools for accounting, documentation, sales, inventory, booking, managing patient data and more, which make it possible to deliver mobile medicine across 50 U.S. states.

Hydreight is positioned for growth: Through its app, Hydreight has created an infrastructure that enables nurses to provide services outside of a hospital and other bricks and mortar facilities. Through Hydreight's affiliated medical practices, nurses who are also existing app users, will gain exclusive access to benefits that they typically would be unable to obtain independently in many jurisdictions throughout the United States (a qualified medical director and physicians who are licensed to practice medicine in every state, pharmacy procurement and professional liability insurance). Nurses or other health care providers can use the Hydreight platform to provide at-home offerings to patients.

Hydreight's performance for the second quarter of 2023 has seen a significant increase across all revenue streams compared with the same period in the prior year:

• Total top-line non-generally accepted accounting principle adjusted revenue for Q2 2023 increased 130 per cent over Q2 2022, reaching $4,416,1031.
• Total revenue of $2,699,668 for Q2 2023 increased 225 per cent over Q2 2022.
• Total top-line non-GAAP adjusted revenue for the six months ended June 30, 2023, increased 148 per cent over the six months ended June 30, 2022, reaching $8,083,524.
• Total revenue of $5,048,084 for the six months ended June 30, 2023, increased 250 per cent over the six months ended June 30, 2022.

Hydreight achieved revenue of $2,699,668 and $5,048,084 for the three and six months ended June 30, 2023, and recognized a net loss of $471,890 and $594,194 over the same periods. Included in total operating expenses of $2,614,934 over the first half of 2023 are significant expenditures in professional, legal and technical consulting fees invested to position the company to compete with the largest companies, private and public, in the heavily regulated health care industry in the United States.

Hydreight completed several key improvements from Jan. 1 to June 30, 2023, that played a pivotal role in the growth throughout 2023 thus far:

• The platform attracted 185 new sign-ups from service providers in first quarter 2023.
• The company expanded its offering networks to 437 new cities from Jan. 1, 2022, to March 31, 2023.
• The Hydreight app received a significant update to empower providers on the platform to take greater control of their service offering, while also offering better in-app training, performance, usability, reporting and more.
• The company secured major partnerships with pharmaceutical partners, including Medline, McKesson, Empower, Anazao, Olympia, Merz and Galderma, among others, as well as various national lab partners, to ensure consistent supply, as well as preferred pricing on products and medications.

Numbers are approximate and provided by Hydreight management.

"We have built a portfolio full of phenomenal companies. We have a strong team and a robust pipeline of catalysts to continue our growth trajectory. We are confident that this momentum will continue for the rest of the year. We'd like to thank our loyal shareholders and look forward to creating long-term value for Victory Square, its network of companies and our shareholders," said Mr. Tejani.

About Victory Square Technologies Inc.

Victory Square builds, acquires and invests in promising start-ups, then provides the senior leadership and resources needed for fast-track growth. Victory Square's sweet spot is cutting-edge technology that is shaping the fourth industrial revolution. Its corporate portfolio consists of 25-plus global companies using artificial intelligence, virtual reality/augmented reality and blockchain to disrupt sectors as diverse as fintech, insurance, health and gaming.

Victory Square is a publicly traded company headquartered in Vancouver, Canada, and listed on the Canadian Securities Exchange (VST), the Frankfurt Stock Exchange (6F6) and the OTCQX (VSQTF).

We seek Safe Harbor.