Mr. Peter Evans reports

XTRACT ONE RELEASES RECORD FIRST QUARTER FISCAL 2024 RESULTS

Xtract One Technologies Inc. has released its first quarter results for the three months ended Oct. 31, 2023. All information is in Canadian dollars unless otherwise indicated.

The press release should be read in conjunction with the company's unaudited condensed consolidated interim financial statements, prepared in accordance with international financial reporting standards (IFRS) and the company's management's discussion and analysis for the periods ended Oct. 31, 2023, and 2022, which can be found under the company's profile on SEDAR+.

"This has been a record quarter on all key performance indicators for the business. Total contract value of new bookings as well as revenue for the platform operating segment has nearly doubled from the previous quarter driven by strong demand for our products along with investments we made to increase manufacturing and deployment capacity," stated Peter Evans, chief executive officer of Xtract One. "The results from this quarter demonstrate a continuation of the growth trends that we have been experiencing over the last 12 months and provides another proof point of the exceptional value that we provide to our customers."

Company financial highlights for the fiscal quarter ended Oct. 31, 2023

Summary of the key financial highlights for the first quarter ended Oct. 31, 2023:

• Total contract value of new bookings was $9.6-million as of Oct. 31, 2023, as compared with $2.9-million for the three-month period ended Oct. 31, 2022, representing an increase of 231 per cent.
• Platform contractual backlog was $9.3-million as of Oct. 31, 2023, as compared with $1.9-million as of Oct. 31, 2022, representing an increase of 393 per cent. The platform backlog as of Oct. 31, 2023, excludes an additional $10.6-million in signed agreements pending installation representing an increase of 169 per cent over the last year, when the signed agreements pending installation balance was $4.0-million.
• Accelerated top-line growth for the company's platform operating segment with $3.0-million of revenue for the three-month period ended Oct. 31, 2023, as compared with $400,000 for the same three-month period ended Oct. 31, 2022, representing a 602-per-cent increase.
• Gross margin of 67 per cent for the company's platform operating segment for the three-month period ended Oct. 31, 2023, as compared with 55 per cent for the same three-month period ended Oct. 31, 2022.

Company business highlights for the fiscal quarter Oct. 31, 2023

Summary of the key business highlights for the first quarter ended Oct. 31, 2023:

• Continued expansion into the healthcare market vertical, as chosen by the U.S. Department of Veteran Affairs Medical Centers in Virginia to create a more efficient health care environment while ensuring the safety of patients and staff.
• Entered into a partnership with the American Association of Professional Baseball as the exclusive preferred supplier to enhance venue security and guest experiences at games.
• Announced the next phase of growth through selective international expansion with three multinational companies, one of which is a global entertainment organization that entered into a three-year contract totalling over $5.1-million (U.S.).
• Subsequent to the period, partnered with Kansas City Current of the National Women's Soccer League to secure entrances at the new CPCK Stadium, which will make history as the world's first and only purpose-built stadium for a women's professional sports team.
• Subsequent to the period, announced that the company had been selected by Community Health Network to protect key hospital locations, with the strategic partnership further underscoring a commitment to enhance hospital safety and improve health care facility security.

Unaudited interim statements of loss and comprehensive loss for the periods ended Oct. 31, 2023, and 2022

The attached table is extracted from the company's unaudited condensed consolidated interim financial statements and presented in Canadian dollars to demonstrate the statements of loss and comprehensive loss for the periods ended Oct. 31, 2023, and 2022.

Unaudited interim statements of cash flows for the periods ended Oct. 31, 2023, and 2022

The attached table is extracted from the company's unaudited condensed consolidated interim financial statements and presented in Canadian dollars to demonstrate the company's cash flows for the periods ended Oct. 31, 2023, and 2022.

Conference call details

Xtract One will host a conference call to discuss its annual results on Thursday, Dec. 7, 2023, at 5:30 p.m. ET. Peter Evans, Xtract One chief executive officer and director, and Karen Hersh, chief financial officer and corporate secretary, will provide an overview of the interim financial results along with management's outlook for the business, followed by a question-and-answer period.

Investors may register for the live conference call by clicking a link available in the original version of this news release. Participants should dial in at least 10 minutes prior to the start of the call. A recording of the call will be available on the company's website after the conference call concludes.

About Xtract One Technologies Inc.

Xtract One Technologies is a leading technology-driven threat detection and security solution leveraging artificial intelligence to provide seamless and secure patron access control experiences. The company makes unobtrusive threat detection systems that enable venue building operators to prioritize and deliver improved patron experiences while providing unprecedented safety. Xtract One's innovative Gateway product enables companies to covertly screen for weapons at points of entry without disrupting the flow of traffic. Its AI-based video recognition software allows venue and building operators to identify weapons and other threats inside and outside of facilities, and receive valuable intelligence for optimizing operations.

We seek Safe Harbor.