Mr. Larry O'Reilly reports

ARHT MEDIA ANNOUNCES Q1 2023 OPERATING RESULTS

Arht Media Inc. has released its financial results for the first quarter ended March 31, 2023.

Q1 2023 Financial Update

Revenue for Q1 2023 was $1.3M compared to $1.4M for Q1 2022, a 8% decrease. The decrease reflects the company's sales focus transition to fixed installations versus events given the longer sales cycle which is expected to positively impact the Company's financials in the remaining quarters of 2023.

Q1 2023 Net loss of $2.8M vs $1.3M in Q1 2022 primarily due to increased headcount as the Company continues to invest for growth.

LTM Revenues was $7.4M an increase of 50% YoY when compared to the prior twelve months reflecting continued positive momentum in the growth of the business.

Cash as of March 31, 2023 was $1.8M as compared to $4.2- on December 31, 2022.

Q1 2023 Business Updates

In January 2023, the Company participated in three international technology conferences - CES (Las Vegas, USA), National Retail Forum (New York, USA) and ISE (Barcelona, Spain). At CES, the Las Vegas Review Journal included ARHT in their 5 Things You Need to See report.

In January 2023, the Company unveiled its new branding, logo, and website, which embodies its commitment to prioritizing its customers and products. The refreshed look and feel of the brand and website better reflect the Company's values and vision, while showcasing its dedication to providing high-quality products and exceptional customer experiences.

In February 2023, the Company completed an activation for the NBA All-Star Weekend which beamed in NBA players live for interviews.

In March 2023, the Company was contracted by the Singapore Defense Technology Summit (a repeat client) to beam Service Now CEO Bill McDermott from San Francisco into Singapore to deliver his keynote address.

In March 2023, the Company successfully supported Ontario Creates in their participation in the South X South West event. Aside from presenting 6 major Ontario performers throughout SxSW ARHT live streamed a performance by US Girls which Rolling Stone Magazine described as "one of the best things we saw."

In March 2023, the Company signed agreements with the Wharton School of Business at the University of Pennsylvania for events hosted in Singapore and the Telfer School of Business at the University of Ottawa for a permanent installation of Capsule.

In March 2023, IMD, an executive education institution that is consistently one of the top ranked in the world, began live beaming instructors between their Swiss and Singapore campuses over the ARHT hologram network.

In Q1 2023, the Company signed six agreements for permanent installation of its hologram technology that will produce ongoing recurring revenue.

In March 2023, the Company signed agreements for the first use of its CAPSULE display in a retail location in China by a major fashion label.

Q1 2023 Subsequent Events

In April 2023, the Company secured a $0.5 million contract with a Global Fortune 50 customer to deliver prerecorded, live holographic streaming services.

In May 2023, The International Institute for Management Development (IMD) installed ARHT Media's live hologram technology at its campuses in Lausanne, Switzerland and Singapore to expand the scope and reach of its executive education programs while minimizing climate impact.

"ARHT's performance in Q1 2023 was below our expectations as several clients delayed their purchases due to economic uncertainty as well as numerous events being rescheduled to later in the year. While this impacted our revenues, we are confident that the rest of 2023 will achieve strong sequential quarterly growth as the Company shows the benefits of its investments in staff and product capabilities," stated Larry O'Reilly, CEO of ARHT Media. "As our product offerings continue to generate interest from some of the most recognizable global brands, management has taken proactive steps to ensure that we capture the most efficient revenue sources to seamlessly transition from a growth company to a profitable enterprise."

About ARHT Media

ARHT is a pioneer and the global leader in live hologram technology. Thanks to its patented end-to-end technology, executives, medical experts, educators, entertainers, and thought leaders can travel at the speed of light to any destination.

ARHT was founded in 2014 and is publicly traded on the TSX Venture Exchange. ARHT has offices in North America, Europe and Asia and operates from its own studios in locations from Toronto to Sydney, as well as a large network of partner studios in every region.

ARHT Media trades under the symbol "ART" on the Toronto Venture Stock Exchange.

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