Mr. Michael Peters reports

CAREBOOK ANNOUNCES FISCAL 2023 RESULTS

Carebook Technologies Inc. has released its results for the year ended Dec. 31, 2023.

"2023 was definitely an important year as we solidified our operations from multiple perspectives. We completed several large implementations and helped our clients onboard a significant amount of users during the year, indicating strong demand for health and wellness services continues to exist" commented Michael Peters, Carebook CEO. "We were successful delivering 32% revenue growth, which was all organic during 2023, while continuing to find further efficiencies within our cost structure and improve our margins and operating cash flows. We expect the organic revenue growth trend to continue into 2024 and we will continue managing cost with an objective of minimizing cash burn and increasing our profit margins. As we were also successful raising long term capital and repaying short term liabilities in 2023, we also significantly increased our financial runway giving us more time to properly execute our business plan."

Fiscal 2023 Highlights

Revenue

Revenue for the year ended December 31, 2023 was $12.3M compared to $9.2M for the year ended December 31, 2022, an increase of 32% driven by strong organic growth in the pharmacy vertical and an increase in license revenue from CoreHealth offset by a decrease in license revenue at Infotech. Revenue in the year ended December 31, 2023, was contributed 63% from the employer vertical and 37% from the pharmacy vertical. Recurring revenue from the employer vertical business is expected to continue to increase during 2024, following the implementation of several large customers during 2023 and the first quarter of 2024.

Loss from Operations and Total Comprehensive Loss

Loss from operations for the year ended December 31, 2023, was $(2.5)M compared to $(6.2)M incurred in the same period of 2022, an improvement of $3.7M. The decrease in operating expenses was due to lower research and development costs and lower sales and marketing costs slightly offset by higher general and administrative costs.

Total comprehensive loss was $(3.3)M for year ended December 31, 2022, compared to a loss of $(17.8)M for the year ended December 31, 2021, an improvement of $14.5M. The variance is driven mostly the absence of a major impairment to goodwill and intangible assets and by a lower loss from operations.

Adjusted EBITDA (1)

Adjusted EBITDA(1) loss for the year ended December 31, 2023 was $(1.1)M compared to an Adjusted EBITDA(1) loss of $(4.1)M for the year ended December 31, 2022, an improvement of $3.0M over the same period in 2022. The corresponding Adjusted EBITDA Margin(1) for the year ended December 31, 2023 was (9)% compared to (44)% in 2022, and represented a meaningful improvement, demonstrating management's fortitude and discipline to continue to generate increasing revenue while managing costs to reach profitability.

Annual Recurring Revenue

ARR(2) was $12.1M as at December 31, 2023, an increase of $3.6M, or 42%, compared to an ARR(2) of $8.5M as at December 31, 2022. This increase was primarily driven by new enterprise customers and organic growth with existing customers. Of the $12.1M of ARR(2) reported, 62% originated from clients outside of Canada.

Capital Raised, Renewal and Amendment of Credit Facilities

On March 8 th, 2023, the Company announced the closing of a non-brokered private placement with UIL Limited, its largest shareholder, for $1.25M in gross proceeds. The private placement resulted in the issuance of 12,500,000 Common Shares at $0.10 per unit and 187,500 Common Share purchase warrants, with each warrant entitling the holder to acquire one Common Share for $0.15 on or before March 8 th, 2025.

On May 23 rd, 2023, the Company announced the closing of a non-brokered private placement of units at $0.10 per unit with Permanent Mutual Limited, an affiliate of UIL Limited, for $1.25M in gross proceeds. The private placement resulted in the issuance of 12,500,000 Common Shares and 187,500 Common Share purchase warrants, with each warrant entitling the holder to acquire one Common Share for $0.15 on or before May 23rd, 2025.

Effective as of October 19, 2023 (the "Renewal Date") the Company renewed and amended its existing senior credit facilities with a leading Canadian Schedule I bank (the "Lender"). Under the amendment, the Lender agreed to (i) continue providing the Company with a $3M revolving facility (the "Revolving Facility") and (ii) be subrogated to all rights of its affiliate regarding a $1.4M non-revolving term loan facility (the "Term Loan Facility" and together with the Revolving Facility, the "Credit Facilities"). Moreover, the maturity date of the Credit Facilities was extended until September 30, 2024 (the "Maturity Date")

Beginning on the Renewal Date, the applicable margin on the Revolving Facility was decreased to 5.8% over prime, and the applicable margin on the Term Loan Facility was decreased to 5.3% over prime.

The Term Loan Facility is subject to mandatory monthly prepayments of $50,000 on the 15th of each month, commencing on November 15 th, 2023, such that the Term Loan Facility will be reduced to $0.8M by the Maturity Date. The Credit Facilities are subject to new financial covenants, where the Company must maintain a minimum cash runway and demonstrate minimum revenue growth. The Credit Facilities continue to be secured by a first-ranking security interest in all of the present and future property and assets of the Company and certain of its subsidiaries.

On December 11, 2023, the Company announced the closing of a private placement with UIL Limited, for $2.0M in gross proceeds. The private placement was completed through a convertible loan agreement maturing on December 22, 2026. The convertible loan agreement included a conversion feature, under which UIL Limited has the right, at their sole option, at any time after six months of the closing of the transaction up and until the maturity date, to convert the principal sum outstanding in whole or in part to common shares at a price of $0.10 per common share. If the Company completes an equity financing or other issuance of Common Shares having an aggregate fair market value of $2.0M at the time of issuance (excluding for such purposes any Common Shares issued upon exercise or conversion of outstanding convertible securities of the Company) within six months of the closing of the transaction, then the principal amount and any accrued but unpaid interest thereon under the convertible loan shall be automatically converted into common shares at the highest of (i) $0.05 per common share, and (ii) the subscription price per common share issued to any person as part of an equity financing during the automatic conversion period, subject to a maximum of $0.25 per Common Share.

Effective December 11, 2023, following the closing of the private placement, the applicable interest rate on the Revolving Facility decreased to 4.3% over prime and the applicable interest rate on the Term Loan Facility decreased to 4.8% over prime.

Financial Outlook

Carebook's financial outlook continues to be positive for 2024. The Company is poised to achieve significant revenue growth while effectively managing its costs and

delivering sustained growth in cashflows. Carebook's strong organic growth and efficient cost management initiatives will allow the Company to continue to successfully execute on its strategy. Carebook is expecting to maintain strong performance in 2024 for the entire Company as a whole and although actual results may differ, we believe Carebook is on a course to deliver Adjusted EBITDA(1) break even or better in fiscal 2024. To complement its organic growth strategy, Carebook will continue to seek out accretive acquisitions and partnerships that improve the accessibility, quality, and functionality of its comprehensive solutions, surrounding ecosystem, and supporting services. Carebook has adopted a disciplined approach towards exploring strategic M&A opportunities in order to grow its reach in other markets and offer new services to its customer base, while maintaining a focus on its organic growth. This financial outlook is fully qualified and based on a number of assumptions and subject to a number of risks described under the headings "Financial Outlook Assumptions" and "Notice Regarding Forward-Looking Statements" of this press release.

Conference Call Details

A conference call will be held at 8:30 AM Eastern on April 1, 2024 to discuss Carebook's year end financial results. Participants may join the Company's conference call by using the following information

Conference Call Details

Date Monday, April 1, 2024

Time: 8:30 a.m. Eastern Time

Local: 416-764-8659

North American Toll Free: 1-888-664-6392

Conference Replay

Local: 416-764-8677

North American Toll Free: 1-888-390-0541

Entry Code: 113963#

Expiration Date: 04/08/2024

Carebook's interim condensed consolidated financial statements and accompanying notes, and Management's Discussion and Analysis for the year ended December 31, 2023 are available on the Company's website at www.carebook.com and on SEDAR+ at www.sedarplus.ca.

About Carebook Technologies

Carebook's digital health platform empowers its clients and more than 4.6 million members to take control of their health journey. During 2021, the Company completed the acquisitions of InfoTech Inc. ("InfoTech"), a global leader in health and productivity risk management, and CoreHealth Technologies Inc. ("CoreHealth"), owner of an industry-leading wellness platform. In combination, these companies create a comprehensive digital health platform that includes both assessment tools and the technology to deliver complementary solutions. Carebook's shares trade on the TSXV under the symbol "CRBK," on the OTC Markets under the symbol "CRBKF," and are listed on the Open Market of the Frankfurt Stock Exchange under the symbol "PMM1."

We seek Safe Harbor.