Mr. Josh Bruni reports

AMERICAN AIRES INC. ANNOUNCES FILING OF Q2 2023 FINANCIAL STATEMENTS AND MD&A

American Aires Inc. has filed its unaudited financial statements, and the management's discussion and analysis (MD&A), for the second quarter of 2023, covering the period April 1 to June 30, 2023. The company reported Q2 2023 sales of $1.93-million. This represents a 29-per-cent, or $430,000, increase compared with the same period a year ago. Compared with the previous quarter of Q1 2023, reported sales increased $440,000, or 29 per cent, mostly due to timely supply of product and inventory buildup, allowing the company's marketing team to take advantage of strong product demand.

The company's strong Q2 2023 performance is further highlighted by its gross profit, which improved by 81 per cent, or $510,000 year-over-year (YoY) to $1.13-million. As a result, the reported gross margin reached a strong 59 per cent, up from 42 per cent in Q2 2022 and fairly consistent with 60 per cent reported in Q1 2023.

Advertising and promotion expenses increased by $280,000, or 51 per cent YoY, to $820,000, while marketing expenses saw a modest increase of $60,000, or 14 per cent, YoY to $490,000. The company's calculated marketing initiatives and controlled spending highlights the company's ability to effectively manage costs while achieving substantial top-line growth. Removing a one-time equity-based finance charge of $920,000, adjusted net loss for the quarter was $1.02-million, 7 per cent higher than $950,000 reported in the second quarter a year ago. Reported net loss was $1.94-million, 105 per cent higher than $950,000 reported in the same period a year ago. When looking at earnings before interest, tax, depreciation and amortization (non-IFRS (international financial reporting standards) measure), EBITDA improved by 7 per cent YOY to the adjusted net loss of $720,000 from $770,000 during the same period last year.

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.