Mr. John Constantine reports

ARCPOINT TO HOST CONFERENCE CALL TO DISCUSS 2024 Q3 FINANCIAL RESULTS AND PROVIDE CORPORATE UPDATE

Arcpoint Inc. will host a conference call at 12:30 p.m. Eastern Time, Thursday, Dec. 5, 2024, to review the company's Q3 financial results for the period ending Sept. 30, 2024. The company will also discuss new opportunities following the transaction with Any Lab Tests Now and the creation of Cresso Brands LLC (Cresso) as announced Aug. 20, 2024.

The dial-in number for the conference call is as follows:  Canada/United States toll-free 1-844-763-8274

International toll:  1-647-484-8814

Callers should dial in five to 10 minutes prior to the scheduled start time and ask to join the Arcpoint call.

Arcpoint president and chief executive officer John Constantine commented: "With the completion of the Cresso transaction in mid-third quarter, we are working hard to complete integration work so that we can begin on-boarding Any Lab Test Now locations onto our MyArcpointLabs technology platform. As additional Cresso Brands locations begin using our platform, we expect this to have a very positive impact on our financial performance."

On Aug. 20, 2024, the company announced that it had entered into a transaction with Any Lab Test Now (ALTN) to bring together the franchise operations of both Any Lab Test Now and Arcpoint into a new joint venture company, Cresso Brands LLC. Any Lab Test Now, based in Atlanta, Ga., was founded in 1992 and at the time of the Aug. 20, 2024, transaction, had more than 235 United States franchise locations, providing direct access to clinical, DNA, and drug and alcohol lab testing services, as well as phlebotomy and other specimen collection services, through its retail storefront business model. When combined with the more than 135 Arcpoint franchise group locations, also at the time of the transaction, Cresso is now the largest franchise network of its kind in the United States. At the time of the Cresso transaction, ALTN and Arcpoint also agreed to make Arcpoint's MyArcpointLabs technology platform (MAPL) the systems choice for Cresso brand franchisees.

Mr. Constantine concluded, "The addition of more locations and users of MAPL will greatly enhance the offering of the franchisees to their customer bases as well as the functionality of the health and wellness care ecosystem we are building by allowing service providers, such as telehealth and direct primary care providers, independent pharmacies and diagnostic labs, to better serve customers. In turn, we believe this will attract more health and wellness practitioners and other service providers, which will create an even more robust ecosystem."

All results below are reported under international financial reporting standards and in United States dollars. The company reminds readers to take into consideration that the Cresso transaction was concluded in the third quarter of 2024 on Aug. 20, 2024. For accounting purposes, the company has deconsolidated Arcpoint Franchise Group and recorded its 29.5-per-cent interest in Cresso as an equity investment going forward. The company advises readers to see its unaudited interim financial statements and the interim management discussion and analysis of the company (MD&A) under the company's profile at SEDAR+.

As at Sept. 30, 2024, the company had total cash on hand of approximately $200,000 (U.S.).

Summary of Q3 2024 financial results

• Total revenues for the three months ended Sept. 30, 2024, were $1.2-million compared with $1.6-million for the three months ended Sept. 30, 2023. The decrease in revenue for Q3 2024 versus Q3 2023 was primarily due to decreased royalty and franchising revenues as no royalties and brand fund revenues were included after the Cresso transaction on Aug. 20, 2024.
• Net income for the three months ended Sept. 30, 2024, was $5.2-million compared with a net loss of $1.5-million for the three months ended Sept. 30, 2023. The increase in net income for Q3 2024 versus a net loss in Q3 2023 was primarily due to a gain on deconsolidation of $6.3-million related to the Cresso transaction, a decrease in cost of revenue of $800,000, a decrease in salary and wages of $160,000, a decrease in travel expenses of $70,000, and a decrease in sales and marketing costs of $70,000, partially offset by a decrease in revenue of $390,000 and an increase in professional fees of $110,000.
• Operating cash flow for the three months ended Sept. 30, 2024, was negative $600,000 compared with negative $1.0-million for the three months ended Sept. 30, 2023.
• EBITDA for the three months ended Sept. 30, 2024, was $5.5-million compared with negative $1.2-million for the three months ended Sept. 30, 2023.
• Adjusted EBITDA for the three months ended Sept. 30, 2024, was negative $600,000 compared with negative $400,000 for the three months ended Sept. 30, 2023.

Summary of 2024 year-to-date financial results

• Total revenues for the nine months ended Sept. 30, 2024, were $4.5-million compared with $4.8-million for the nine months ended Sept. 30, 2023. The decrease in revenue was primarily due to decreased royalty and franchising revenues as no royalties and brand fund revenues were included after the Cresso transaction on Aug. 20, 2024.
• Net income for the nine months ended Sept. 30, 2024, was $2.3-million compared with a net loss of $6.0-million for the nine months ended Sept. 30, 2023. The change was primarily due to a gain on deconsolidation of $6.3-million related to the Cresso transaction, a decrease in cost of revenue of $1.1-million, a decrease in salary and wages of $1.0-million, a decrease in software development expenses of $210,000, and a decrease in sales and marketing costs of $240,000, partially offset by a decrease in revenue of $360,000 and an increase in professional fees of $50,000.
• Operating cash flow for the nine months ended Sept. 30, 2024, was negative $2.5-million compared with negative $4.0-million for the nine months ended Sept. 30, 2023.
• EBITDA for the nine months ended Sept. 30, 2024, was $3.3-million compared with negative $5.0-million for the nine months ended Sept. 30, 2023.
• Adjusted EBITDA for the nine months ended Sept. 30, 2024, was negative $2.5-million compared with negative $3.2-million for the nine months ended Sept. 30, 2023.

About Arcpoint Inc.

Arcpoint is an innovative United States-based health care company that leverages technology along with brick-and-mortar locations to give businesses and individual consumers access to convenient, cost-effective health care information and solutions with transparent, upfront pricing, so that they can be pro-active and preventative with their health and well-being.

We seek Safe Harbor.