Mr. Ryan Hardy reports

PERK LABS REPORTS FIRST QUARTER 2023 RESULTS

Perk Labs Inc. has released financial results for the first quarter ended Feb. 28, 2023.

Overview

For the first quarter ending Feb. 28, 2023, the company implemented cost-reduction measures and explored strategic options with advice from James Edward Capital Corp., signed a non-binding letter of intent (LOI) to merge with Getit Technologies Inc., and later signed a binding letter of intent. The company also underwent a chief financial officer transition, engaged Independent Trading Group for market-making services and received a notice of allowance for a United States patent application.

"Since becoming CEO [chief executive officer] on March 2, 2023, my primary focus has been to streamline the company's operations, and develop a clear and concise strategy for growth. I am proud to say that we have made significant progress in these areas and am confident our efforts will be reflected in much more positive results in our next quarter," said Ryan Hardy, Perk CEO. "We believe that by focusing on signing new enterprise clients and leveraging the synergies of both Perk and Getit, the company is well positioned to achieve much greater success in the upcoming quarter. By prioritizing enterprise sales and strategic partnerships, we are confident our efforts will result in improved results and generate significant value for our stakeholders."

Q1 2023 financial highlights:

• Revenue of $2,708 in Q1 2023, compared with $8,982 in Q1 2022;
• Net loss of $152,000 in Q1 2023, compared with loss of $406,000 in Q1 2022;
• General and administrative expenses decreased significantly, from $277,000 in Q1 2022 to $199,000 in Q1 2023, as the company continued to minimize its administrative expenses;
• Research and development expenses also decreased significantly, from $203,000 in Q1 2022 to $105,000 in Q1 2023, as the company became more efficient at developing its products;
• Sales and marketing expenses also decreased from $106,000 in Q1 2022 to $43,000 in Q1 2023.

Q1 2023 operational highlights:

• Strategic initiative and cost realignment: On Dec. 6, 2022, the company announced that it implemented cost-reduction measures, reallocated its work force, and was exploring strategic options such as raising growth capital, merger, acquisition or other transactions. The company received advice from James Edward Capital, a boutique investment bank specializing in emerging growth companies, on its strategic options.
• Non-binding letter of intent: On Dec. 19, 2022, the company announced it had signed a non-binding letter of intent to merge with Getit, to form a leading digital technology provider of delivery logistics and digital ordering solutions with immediate revenue growth opportunities.
• Binding letter of intent: The company announced on Jan. 4, 2023, that it had signed a binding letter of intent (LOI) to merge with Getit. The appointment of Patrick Power to Perk's board of directors was also announced. Mr. Power is the chairman and president of James Edward Capital, an Ottawa-based boutique investment bank focused on emerging growth companies.
• CFO transition: On Jan. 20, 2023, the company announced that Vanessa Altamirano would step down as CFO, effective Feb. 17, 2023, to pursue another professional opportunity, and that the company was restructuring for the planned merger with Getit. Andrew Bailes, a seasoned finance executive and principal at Hertford Advisors, was announced as interim CFO until a permanent CFO is named.
• Engaged market-maker: On Jan. 26, 2023, the company announced that it had engaged Independent Trading Group (ITG) to provide market-making services in compliance with the Canadian Securities Exchange policies. The agreement was for an initial three-month term and is renewable for additional one-month periods. The company will pay ITG $5,000 per month for its services, and the agreement may be terminated with 30 days of notice by either party.
• Notice of allowance of U.S. patent: On Feb. 22, 2023, the company announced it had received a notice of allowance for a United States patent application directed at systems and methods for electronic payments with fraud prevention based on correlating transaction data and information from a user's device.

Highlights subsequent to Feb. 28, 2023:

• Completion of merger with Getit: On March 2, 2023, the company announced it had completed its merger with Getit. The acquisition was completed through a share exchange, with the company issuing an equivalent value of $4.655-million in common shares of the company in exchange for all of the issued and outstanding shares of Getit. As part of the merger, Steve Cadigan and James Topham stepped down from the board of directors of the company. Ben Lacroix and Mr. Hardy, the co-founders of Getit, were appointed to the board of directors, and Mr. Hardy became the new CEO, with Jonathan Hoyles transitioning to the role of chief legal officer. Mr. Power assumed the position of audit committee chair, succeeding Mr. Topham. The company further announced it planned to change its name and ticker symbol to reflect the combined entity. In connection with the merger, the four largest shareholders of Getit agreed not to sell, assign or otherwise transfer the common shares of the company received, with the lock-up period expiring on Feb. 28, 2024.
• Private placement: On April 25, 2023, the company announced that it had closed a private placement of 11,609,909 units, for proceeds of approximately $190,000, and settled a debt of approximately $85,900 with a creditor by issuing 5,238,414 units. Each unit included one common share and one common share purchase warrant. The net proceeds of the private placement are to be used for sales, marketing and working capital. The company also announced that Gary Zhang was transitioning from his role as chief technology officer to an advisory role.

Outlook

The company's strategic priorities for 2023 include:

• A successful merger of the operations of Perk Hero Software Inc. and Getit;
• Sign enterprise customers to use the company's technologies and services;
• Continued improvement of the company's products and offerings;
• Grow the number of end-user customers and businesses using the company's technologies and services;
• Grow the company's licensing and transactional revenue;
• Invest in sales, marketing and communication strategies to drive growth.

The company's complete financial results are available in its consolidated financial statements and management's discussion and analysis for the quarter ended Feb. 28, 2023, each filed with Canadian securities regulators on SEDAR.

International Financial Reporting Standards

The operational and financial information in this release is based on the consolidated figures in accordance with International Financial Reporting Standards (IFRS).

About Perk Labs Inc.

Perk Labs, the owner of Getit Technologies Inc. and Perk Hero Software Inc., specializes in technology, logistics and connecting communities. Its digital payments and loyalty software empowers merchants to optimize their business and customer journey. The company's marketplace and driver network connects and supports its customers' business with additional sales and flexible last-mile delivery options.

We seek Safe Harbor.