Mr. Holger Arians reports

BANXA ANNOUNCES AUDIT UPDATE

Banxa Holdings Inc. has received an update on the audit from the company's audit firm, PKF Antares. PKF has notified Banxa that the audit is moving to the final review stage with senior partners of the firm. PKF has provided a revised timeline to complete this final review process and it is anticipated to be completed by Dec. 3, 2023.

This revised timeline is tentative due to PKF having challenged Banxa's revenue recognition policy as it relates to revenue recognized on an agency basis. Banxa is fully committed to ensuring all its accounting policies are sound and as such has engaged an independent third party to review its revenue recognition policy which has caused the additional delay in closing this year's audit. Banxa is in the process of compiling supporting documentation to defend its agency revenue recognition policy. Banxa's agency revenue recognition policy has been in place for the past four years. The outcome of Banxa's agency revenue recognition policy review does not have an impact on the financial statements beyond revenue and cost of sale. Gross profit and net income will remain unchanged, regardless.

Banxa and PKF are diligently working to finalize the audit as soon as Nov. 30, 2023. This is still well within the deadline provided by the British Columbia Securities Commission of Dec. 29, 2023. Banxa will continue to update the market on a biweekly frequency on the audit's progress.

"Although this delay is frustrating, it does not dim in any way Banxa's tremendous future prospects. Accounting conventions for crypto are complex and still being shaped, a reality faced by publicly traded companies in the industry. Banxa and PKF are committed to completing a thorough audit, which is critical for instilling confidence into all our stakeholders heading into 2024 and beyond," said director and head of corporate affairs, Zafer Qureshi.

We seek Safe Harbor.