Mr. Ryan Hamlin reports

POSABIT REPORTS FIRST QUARTER 2025 FINANCIAL RESULTS

Posabit Systems Corp. has released its financial results for the three months ended March 31, 2025.

"As highlighted during our recent annual earnings call, Posabit delivered another steady quarter, with consistent adjusted gross margin dollars and flat adjusted EBITDA as compared to the previous quarter -- reinforcing the company's long-term financial stability," said Ryan Hamlin, co-founder and chief executive officer of Posabit. "We remain committed to operating efficiently while continuing to innovate and we're seeing strong growth across our expanding product portfolio."

Mr. Hamlin added: "Our point-of-sale system continues to lead the industry, and Q1 marked our busiest quarter ever for POS sales and implementations. We also saw stronger-than-expected demand for our newer e-commerce and menu products, with momentum expected to continue into Q2. While overall revenue was down slightly due to our ongoing payment processing migration, our adjusted gross profit margin of 65 per cent was the highest in the company's 10-year history. We're encouraged by the progress we've made. We have executed our cost reduction plans, remain profitable and cash flow positive, and have a focused leadership team driving toward a bright future."

Recent operational highlights:

• The point-of-sale product continues to experience significant growth, particularly in Washington, driven by its dependable recurring revenue model.
• Adjusted revenue, adjusted gross profit and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) remained steady quarter over quarter, with this consistency expected to continue through 2025.
• The company finalized the settlement of its last outstanding legal matter, paving the way for reduced legal expenses for the remainder of 2025.
• The company completed migration of several cost generating activities to its payments partner, resulting in additional costs savings in 2025 and beyond.

Balance sheet

As of March 31, 2025, the company had cash and cash equivalents of $736,000, compared with $999,000 as of Dec. 31, 2024. This slight reduction in cash is due to paying off existing legal settlement obligations, as well as annual non-executive level salary adjustments.

An attached table reconciles revenue, as reported, to adjusted revenue for March 31, 2025, versus March 31, 2024, as reported.

An attached table reconciles gross margin, as reported, to adjusted gross profit for March 31, 2025, versus March 31, 2024, as reported.

An attached table reconciles loss, as reported, to adjusted EBITDA for March 31, 2025, versus March 31, 2024, as reported.

Conference call information

Date:  May 30, 2025

Time:  4:30 p.m. Eastern Time

Toll-free:  888-506-0062

International:  973-528-0011

Participant access code:  181006

Webcast:  A webcast will be available.

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:  919-882-2331

Replay passcode:  52562

Webcast replay:  A webcast replay will be available.

Financial reports

Full details of the financial and operating results are described in the company's consolidated financial statements for the three months ended March 31, 2025, with accompanying notes. The consolidated financial statements and additional information about Posabit are available on the company's website and on SEDAR+.

Non-IFRS (international financial reporting standards) measures

Adjusted revenue, adjusted gross profit (and adjusted gross profit margin) and adjusted EBITDA are non-IFRS measures used by management that do not have any prescribed meaning by IFRS and may not be comparable with similar measures presented by other companies. The company defines adjusted revenue as gross revenue, minus licence support revenue, plus actual licensing cash received as part of Posabit's licensing deals. The company defines adjusted gross profit as adjusted revenue less company cost of goods sold and adjusted gross profit margin as a percentage of adjusted gross profit as compared with adjusted revenue. The company defines adjusted EBITDA as net income or loss generated for the period as reported, before interest, taxes, depreciation and amortization, and further adjusted in accordance with a reconciliation table set out in this news release. The company believes these non-IFRS measures are useful metrics to evaluate its core operating performance, and uses these measures to provide shareholders and others with supplemental measures of its operating performance. The company also believes that securities analysts, investors and other interested parties frequently use these non-IFRS measures in the evaluation of companies, many of which present similar metrics when reporting their results. The company cautions readers that adjusted revenue, adjusted gross profit (and adjusted gross profit margin) and adjusted EBITDA are not substitutes for gross revenue, gross profit or profit/loss, respectively.

About Posabit Systems Corp.

Posabit is a fintech (financial technology) company, working exclusively within the cannabis industry. The company provides a best-in-class point-of-sale solution and is the leading cashless payment provider for cannabis retailers. It works tirelessly to build better financial services and transaction methods for merchants. Posabit 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.