Mr. Larry O'Reilly reports

ARHT MEDIA ANNOUNCES Q3 2023 OPERATING RESULTS

Arht Media Inc. has released its financial results for the third quarter ended Sept. 30, 2023.

Q3 2023 financial update:

• Revenue for Q3 2023 was $1.4-million, compared with $2.0-million for Q3 2022. The decrease reflects the company's strategic shift to product sales from event rentals, which has a longer sales cycle but drives higher customer lifetime value and overall revenue. In addition, several customer sales agreements were pushed from Q3 into Q4 of 2023.
• Gross margin increased to 57 per cent in Q3 2023, versus 51 per cent in Q3 2022.
• Q3 2023 adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was a loss of $1.8-million, versus a loss of $1.4-million in Q3 2022.
• Cash as of Sept. 30, 2023, was $500,000, as compared with $500,000 on June 30, 2023.

"During the third quarter, Arht Media achieved a number of important milestones that have positioned the company as the state-of-the-art holographic organization serving large-scale global enterprise clients," stated Arht Media chief executive officer Larry O'Reilly. "We are already seeing multiunit orders from these global enterprise clients and channel partners. I am particularly proud of the development and launch of the Arht 2.0 operating system, as well as the Arht SaaS-based holographic network and supporting NOC technical support, the only one of its kind in the industry. The Arht team is very excited about the growth we are seeing in this very dynamic industry as it continues to mature.

"While third quarter financial results were below our expectations, I am optimistic about the performance of the company going forward and we expect revenues to end 2024 on a strong note," Mr. O'Reilly commented.

Q3 2023 business updates:

• In July, 2023, Arht began to roll out the Arht 2.0 ISO software platform, the world's most advanced holographic software platform. This system was designed to increase ease of use, improve reliability and provide scalability to service large-scale global clients. Featuring AE Quick Connect, AE Live Advance Mode, AE CMS, AE RMS, AE Analytics and AE Kiosk -- backed by the Azure Cloud and the only 24-hour-a-day-and-seven-day-a-week holographic NOC -- this new platform is designed for enterprise clients and has unlimited scale.
• In July, 2023, the company: (i) signed its first Capsule subscription agreement with Paradise Lagardere, one of the world's largest travel retailers; (ii) had Capsule event activations with a leading luxury brand in New York, Tokyo and Shanghai; and (iii) was featured at the 3M Open in Minneapolis.
• In August, 2023, the company successfully closed a private placement of secured subordinated debentures of approximately $2.0-million, the majority of which was subscribed by management, directors and insiders.
• In August, 2023, Arht's technology was featured on the main stage in Panama City for the 400,000-member IEEE Global Conference and had its first long-term installation at a major convention center. Arht also expanded its channel sales network with L'Antenne in Paris, Newtonlab Space in Barcelona and Africa Union Technologies in Johannesburg.
• In September, 2023, the company announced the appointment of Jack Bensimon, a recognized leader in the world of advertising, to its board of directors.
• In September, 2023, the company received CE, CB, UL, CSA and additional country-specific certifications for its Capsule hologram display, allowing it to be sold in an extensive list of locations worldwide.

Q3 2023 subsequent events:

• The company installed its Capsule holographic display in an experience centre at the headquarters of one of the largest companies in India and at airports in Charlotte, N.C., and Toronto, Ont., and was featured at several events, including a global oil and gas company in India, one of the largest banks in Europe, and with Amazon at TwitchCon in Las Vegas.

About Arht Media Inc.

Arht is a pioneer and the global leader in live and prerecorded 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, and brands and retailers can engage their clients with cutting-edge 3-D interactive content.

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 Singapore as well as a large network of partner studios in every region.

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