Mr. Derek Webb reports

BIOREM REPORTS 2023 FINANCIAL RESULTS INCLUDING $0.14 EARNINGS PER SHARE

Biorem Inc. has released its results for the three-month and 12-month periods ended Dec. 31, 2023. Biorem's complete fiscal 2023 year-end financial statements and management discussion and analysis have been filed on SEDAR+.

12 months ended Dec. 31, 2023

For the twelve months ended Dec. 31, 2023 revenue totalled $25.2-million compared with $28.9-million for the same twelve months in 2022. Net earnings for the year were $2.2-million compared with net earnings of $1.6-million in 2022. Earnings per share for the year increased by 40 per cent to $0.14 per share against earnings per share of $0.10 basic and $0.09 fully diluted reported in 2022.

Gross profit for the year was $7-million, a 20 per cent decrease from gross profit of $8.8-million recorded for the year-ended Dec. 31, 2022.

Total operating expenses for the year were $4-million compared with $6.2-million of operating expenses in 2022. The $ 1.2-million decrease in operating expenses year over year was due to a decrease in commission expenses on the reduced revenues, the reversal of $373,000 in credit loss provisions that had been recorded in 2022 and one time legal and settlement expenses incurred in 2022 of approximately $700,000 related to the settlement of a long standing lawsuit.

On Dec. 31, 2023 the company had cash on hand of $2.3-million and working capital of $6.7-million compared with $3.8-million of cash and $4.9-million of working capital on Dec. 31, 2022. The decrease in cash on hand was largely due to the repayment of $775,000 of the company's operating loan and the repayment of $525,000 of long term debt during the year.

Total order bookings for the year were $36.5-million, a 3 per cent decrease in bookings over the record bookings in 2022 of $37.7-million. The company's order backlog stood at $50.1-million on Dec. 31, 2023 compared with $38-million on Dec. 31, 2022.

"Management looks forward to beginning the next phase of the corporation's development", said Derek S. Webb, President and CEO. "A strong backlog; healthy bidding activity and a number of exciting new products introduced and under development promise to provide us with the tools necessary to achieve growth in 2024."

"We are particularly excited about expanding both our organic as well as inorganic growth initiatives. The market has been responsive to our new introductions and we expect the same level of interest with the next offering of complimentary technologies. A number of new initiatives are underway with results expected to begin to be realized within the coming quarters. All in all, a very exciting period for our company."

Three Months ended Dec. 31, 2023

Revenue in the fourth quarter of 2023 was $12.2-million compared with $5.5-million in the previous quarter and $10.9-million in the fourth quarter of 2022. Orders booked in the quarter totalled $7.9-million.

Gross profit of $4.4-million in the fourth quarter amounted to 36.1 per cent of revenue, which was higher than the 28 per cent gross profit margin in the previous quarter and the 35.8 per cent achieved in the same quarter the prior year. The increase in gross profit and increased gross margin percentage was the result of higher revenues in the quarter and a reduction in warranty and inventory valuation provisions.

Total operating expenses (net of other income) for the quarter were $1.3-million, a 50 per cent reduction from the operating expenses of $2.6-million incurred during the fourth quarter of 2022. The comparative decrease from the fourth quarter a year ago was due to $700,000 of legal and settlement expenses and a $200,000 expected credit loss provisions recorded in the 4th quarter of 2022.

Ebitda for the quarter was $3.3-million compared with ebitda of $1.3-million in the fourth quarter of 2022.

Net earnings for the quarter were $2.4-million compared with net earnings of $789,000 in the fourth quarter of 2022.

About BIOREM Inc.

BIOREM is a leading clean technology company that designs, manufactures and distributes a comprehensive line of high-efficiency air emissions control systems used to eliminate odors, volatile organic compounds (VOCs), and hazardous air pollutants (HAPs). With sales and manufacturing offices across the continent, a worldwide sales representative network and more than 2,000 installed systems worldwide, BIOREM offers state-of-the-art technology-based products and peace of mind for municipalities, industrial companies and their surrounding communities. Additional information on Biorem is available on our website at www.biorem.biz.