Mr. Ryan Hamlin reports

POSABIT REPORTS FOURTH QUARTER AND ANNUAL 2024 FINANCIAL RESULTS

Posabit Systems Corp. today released its financial results for the three and 12 months ended Dec. 31, 2024.

"After a turbulent 2023 for the cannabis industry at large, Posabit's main focus in 2024 was solidifying the health of the company for the present and the future. There were few, if any, winners in our industry over the past two years, but we are proud of how deftly we've placed Posabit in a position to thrive in the long run," said Ryan Hamlin, co-founder and chief executive officer of Posabit.

Mr. Hamlin continued: "Adjusted gross profit dollars increased 19 per cent year over year, opex is down significantly and our cash situation is relatively unchanged. Our point-of-sale business -- with its steady monthly revenue and future payments revenue potential -- continues to grow rapidly and has gained an incredible reputation across the cannabis industry. Through our world-class products, Posabit remains focused on consistent and responsible growth."

Recent operational highlights

• Posabit continues to dominate its home market of Washington state, with its point of sale now in over 70 per cent of all dispensaries and processing over 85 per cent of all sales;
• Since the beta launch of Posabit's e-commerce/menu in Q3 of 2024, nearly 100 dispensaries have adopted the e-commerce platform;
• Quarter-over-quarter adjusted revenue, adjusted gross profit and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) remains stable, a trend that is expected to continue throughout 2025;
• Posabit continues to focus on operational efficiencies to ensure Posabit remains cash flow positive in 2025.

Balance sheet

As of Dec. 31, 2024, the company had cash and cash equivalents of $1-million compared with $1.5-million as of Dec. 31, 2023. This slight reduction in cash is due to paying off aged accounts payables as well as a cash settlement for an outstanding lawsuit.

The next attached tables reconcile revenue, as reported to adjusted revenue, gross profit, as reported to adjusted gross profit and EBITDA, as reported to adjusted EBITDA for the 12 months ended Dec. 31, 2024.

Conference call information

Date:  April 24, 2025

Time:  4:30 p.m. Eastern Time

Toll-free:  888-506-0062

International:  973-528-0011

Participant access code:  977825

Conference call replay information

The replay will be available approximately one hour after the completion of the live event.

Toll-free:  877-481-4010

International:  877-481-4010

Replay pass code:   52361

Financial reports

Full details of the financial and operating results are described in the company's consolidated financial statements for the three- and 12-month periods ended Dec. 31, 2024, with accompanying notes. The consolidated financial statements and additional information about Posabit are available on the company's website or on SEDAR+.

About Posabit Systems Corp.

Posabit is a fintech, working exclusively within the cannabis industry. The company provides a best-in-class point-of-sale solution and are the leading cashless payment provider for cannabis retailers. Posabit works tirelessly to build better financial services and transaction methods for merchants. The company brings cutting-edge software and technology to the cannabis industry so that all merchants can have a safe and compliant set of services to solve the problems of a cash-only industry.

We seek Safe Harbor.