Mr. Ryan Hardy reports

PERK LABS REPORTS THIRD QUARTER 2023 RESULTS

Perk Labs Inc. has released financial results for the third quarter ended Aug. 31, 2023.

Overview

For the third quarter of 2023, the company continued business consolidation from its merger with Getit Technologies Inc. As a result, the company has refocused and remodelled its efforts to focus on custom payment and ordering software for large enterprise clients with complex purchasing environments. This new focus has permitted the company to continue cost-cutting efforts while launching and scaling with new large enterprise clients.

"The company has made significant headway postmerger. Our focus has been on managing cash flow, controlling costs and reducing expenses as we reposition to a focused [business-to-business] large enterprise model. This postmerger strategy and direction will show immediate growth for the company over the coming quarter and into the new fiscal year as we move away from third party marketplaces to custom solutions for large brands with our powerful white-label technologies," said Ryan Hardy, chief executive officer of Perk Labs.

Q3 2023 financial highlights:

• Revenue was $51,976 for the nine months ended Aug. 31, 2023, compared with $20,406 for the comparative period in 2022.
• General and administration expenses decreased for the nine months ended Aug. 31, 2023, to $869,617 (Aug. 31, 2022: $940,605) due to reduced head count in the company's efforts to preserve cash balances.
• Sales and marketing expenses decreased slightly for the nine months ended Aug. 31, 2023, ended Aug. 31, 2023, to $296,283 (Aug. 31, 2022: $309,053) as the company decreased to $296,283 (Aug. 31, 2022: $309,053) as the company decreased both marketing and sales costs to preserve cash balances.
• The company's comprehensive loss for the nine months ended Aug. 31, 2023, was $1,435,905 compared with $2,818,243 for the nine months ended Aug. 31, 2022.

Q3 2023 operational highlights:

• Ottawa dragon boat festival: Perk Labs' subsidiary, Getit Technologies, was selected as the official ordering and payment partner for the Tim Hortons Ottawa dragon boat festival and BeaverTails Ottawa ice dragon boat festival in a three-year, multifestival agreement. Getit will earn digital payment processing fees for food, beverages and donation transactions as the designated ordering and payment partner. Additionally, Getit will actively contribute to the Ottawa dragon boat community by becoming an official sponsor, offering support beyond its role in ordering and payment technology for the festivals.
• Clocktower Group of Brewpubs: Getit Technologies was also selected as an ordering and payment technology provider by the Clocktower Group of Brewpubs, encompassing five locations across Ottawa, including Ottawa's original craft brewery.
• Fiazza Fresh Fired: Fiazza Fresh Fired also selected Getit Technologies as its technology partner and has implemented Getit's innovative Web-based QR code ordering solution at four of its locations in Ottawa.
• Annual general meeting: Perk Labs held its annual general meeting of shareholders on July 5, 2023, and Kirk Herrington, Larry Timlick, Ryan Hardy, Ben Lacroix and Jonathan Hoyles were elected as directors of the company. In accordance with the company's majority voting policy, Patrick Power was not elected, and Mr. Power submitted his resignation to the board.
• Resignation of chief legal officer: Effective July 13, 2023, Mr. Hoyles resigned as Perk Labs' chief legal officer and director to pursue another opportunity. His departure from the company was amicable.

Highlights subsequent to Aug. 31, 2023:

• Private placement: In September, the company closed a non-brokered private placement of 1,312,500 units at a price of 1.6 cents per unit for gross proceeds of $21,000. Each unit consists of one common share of the company and one common share purchase warrant. Each warrant entitles the holder to purchase one additional common share at a price of five cents per common share for a period of 24 months from the closing.
• Debt settlement agreement: Additionally, in connection with the private placement, the company entered into a debt settlement agreement with an arm's-length creditor for the settlement of a total of $20,000 in debt in consulting and design services provided by the creditor to the company. In settlement and full satisfaction of the debt, the company issued 1.25 million units to the creditor.
• Private placement of convertible debentures: Perk Labs also closed its non-brokered private placement of convertible debentures for gross proceeds of $450,000. The debentures mature one year from the date of issuance, bear interest at a rate of 15 per cent per annum and are convertible into common shares at a conversion price of five cents per common share.
• Carleton University Student Association: In October, Perk Labs announced that the Carleton University Student Association (CUSA) selected Perk Labs' subsidiary Getit Technologies as its ordering and payment technology provider for the Carleton University campus and its student body. Carleton is an Ottawa university with more than 30,000 students, and 2,400 staff and faculty members. As part of the multiyear partnership, Getit Technologies will roll out its Web-based QR code ordering solution for CUSA's food outlets, and will be facilitating ticketing and registration for all events hosted by CUSA. It is expected that this contract will eventually be worth up to $100,000 in annual revenues to Perk Labs.
• Queen Street Fare: In October, Perk Labs announced that Queen Street Fare (QSF) selected Perk Labs' subsidiary Getit Technologies as its ordering and payment technology provider for its food and beverage vendors. QSF is Ottawa's first food hall, featuring six eateries. As part of the partnership, Getit Technologies will be providing QR code digital ordering through a custom branded Web app that unifies all the property offerings into an easy-to-navigate interface for its guests.

New private placements

Private placement of units

The company is proposing a new non-brokered private placement for gross proceeds of up to $1-million. Units will be offered at a price of one cent per unit. Each unit will consist of one common share of the company and one common share purchase warrant. Each warrant will entitle the holder to purchase one additional common share at a price of five cents per common share for a period of 24 months from the closing.

In connection with the private placement, the company may enter into debt settlement agreements with arm's-length creditors for the settlement of a total of up to approximately $250,000 debt in professional services provided by the creditors to the company.

Private placement of convertible debentures

The company is also proposing a non-brokered private placement of convertible debentures for gross proceeds of up to $1-million. The convertible debentures will be offered for a two-year term at an interest rate of 15 per cent and will be convertible into common shares of Perk Labs at a conversion price of five cents per share, subject to the terms and conditions set forth in the convertible debenture agreement.

The private placements of the units and the convertible debentures are expected to close on or before Dec. 9, 2023, unless further extended. The closing is subject to customary closing conditions, including, but not limited to, the receipt of all necessary approvals. All securities issued pursuant to the private placements will be subject to a statutory hold period of four months and one day following the closing. A finder's fee may be payable in connection with the private placements. The company intends to use the net proceeds from the private placements for general working capital purposes, accounts payable and employee salaries.

Outlook

In the coming quarter, the company expects to sign and launch a number of enterprise clients and roll out improvements and integrations between the Getit and Perk platforms. It believes that these developments, in conjunction with increased sales and marketing resources, will provide the required visibility to the company's operations that will enable growth.

The company's strategic priorities for the remaining year of 2023 include:

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

Additionally, it is open to opportunities to expand its operations through mergers and acquisitions.

The company's complete financial results are available in its consolidated financial statements and management's discussion and analysis for the quarter ended Aug. 31, 2023, each filed with Canadian securities regulators at 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.

About Perk Labs Inc.

Perk Labs, the owner of Getit Technologies and Perk Hero Software, specializes in apps, payments and loyalty rewards. Its technologies connect businesses and consumers through mobile apps and Web-based payment services that streamline and optimize the consumer experience and merchant digitalization.

We seek Safe Harbor.