Mr. Josh Bruni reports

AMERICAN AIRES INC. ANNOUNCES FILING OF Q1/2023 FINANCIAL STATEMENTS AND MD AND A

American Aires Inc. has filed its unaudited financial statements and the management discussion and analysis for the first quarter of 2023, covering the period Jan. 1 to March 31, 2023. Consistent with the key financial metrics disclosed on April 21, 2023, the company's adjusted sales for Q1 2023 grew by a remarkable 138 per cent year-over-year (YoY) to $1.64-million, or $950,000 higher than the $690,000 reported in Q1 2022.

The company reported Q1 2023 sales were $1.49-million, including an international financial reporting standards required adjustment for warranty returns and deferred revenue for undelivered orders totalling $150,000. This represents a 116-per-cent or $800,000 increase compared with the same period a year ago. The company's strong Q1 2023 performance is further highlighted by its gross profit, which improved by 164 per cent YoY to $890,000. As a result, the reported gross margin reached a strong 60 per cent, up from 49 per cent in Q1 2022. This notable improvement demonstrates American Aires's operational efficiency and effective pricing strategy.

The company's targeted marketing and advertising efforts have been instrumental in driving customer acquisition and retention. Advertising and promotion expenses increased by $260,000, or 65 per cent YoY, to $660,000, while marketing expenses saw a modest increase of 8 per cent YoY to $440,000. The company's calculated marketing initiatives and controlled spending highlight Aires's ability to effectively manage costs while achieving substantial growth. Despite the higher advertising and promotion as well as marketing expenses, total expenses for the quarter declined to $1.75-million, $300,000 or 14 per cent lower YoY. Net loss for the quarter narrowed to $940,000, which is an improvement of $750,000 or 45 per cent when compared with the first quarter a year ago.

About American Aires Inc.

American Aires is a Canadian-based nanotechnology company committed to enhancing well-being and environmental safety through science-led innovation, education and advocacy. The company has developed proprietary silicon-based microprocessors that reduce the harmful effects of electromagnetic radiation (EMR). Aires's Lifetune products target EMR emitted by consumer electronic devices such as cellphones, computers, baby monitors and Wi-Fi, including the more powerful and rapidly expanding high-speed 5G networks.

We seek Safe Harbor.