Mr. Derek Spratt reports

TURNIUM TECHNOLOGY GROUP INC. REPORTS FISCAL 2023 AUDITED FINANCIAL RESULTS

Turnium Technology Group Inc. has released its financial results for the 2023 fiscal year. All financial information is provided in Canadian dollars unless otherwise indicated.

The consolidated financial statements and management discussion and analysis (MD&A) for the year ended Sept. 30, 2023, are available on the company's SEDAR+ profile.

"Turnium generated $5.2-million in revenue, a slight year-over-year increase compared to fiscal 2022. We grew our SaaS revenue by 3.2 per cent year-over-year, despite the capital constraints we encountered throughout most of the year which delayed the release of our next-generation V7 SD-WAN platform. Additionally in fiscal 2023, our team implemented numerous cost-cutting initiatives and efficiency improvements which directly translated into annual cost savings of approximately $1-million. We also raised new capital to fully retire and discharge the Firepower secured loan, and also entered into a strategic transaction (non-binding merger letter of intent) with Activeport. Our team remains focused on executing on its strategy of growing its sales pipeline, as part of the release of our V7 platform during the 2024 fiscal year. The successes we saw in the last fiscal quarter should start generating revenue and gross margin growth as we move forward," commented Turnium chief executive officer Derek Spratt.

Fiscal fourth quarter 2023 highlights:

• Revenue in the fourth quarter was $1.26-million, compared with $1.37-million recorded in the fourth quarter of 2022.
• Gross margin in the fourth quarter was $870,000, compared with $1.04-million in the fourth quarter of 2022.
• Total expenses in the fourth quarter were $2.22-million, compared with $2.59-million in the fourth quarter of 2022.
• Number of common shares outstanding (basic) at 2023 fiscal year-end was 104,605,243.
• Cash position at 2023 fiscal year-end was $152,882.

Subsequent events

On Dec. 11, 2023, the company entered into a loan agreement with a third party for proceeds of $250,000. The proceeds will be used for operating purposes. This loan is repayable in 60 monthly payments starting November, 2024, carries a floating interest rate (currently at 9.3 per cent) and is secured by a general security agreement on the company's assets.

Quarterly financial highlights

The company's key financial results for the three months ended Sept. 30, 2023, are as noted herein.

Fiscal year financial results summary

Results for the years ended Sept. 30, 2023, and 2022, are as noted herein.

About Turnium Technology Group Inc.

Turnium Technology Group delivers its SD-WAN (software-defined wide-area network) solution as a white-label, disaggregated software platform that original equipment manufacturer channel partners host, manage, brand and price. Turnium is also available to resellers as a Turnium-branded managed service. Turnium SD-WAN is sold through a channel partner program designed for communications service providers, Internet and managed service providers, system integrators, and value-added resellers.

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