Mr. Michael Hilmer reports

HANK PAYMENTS ANNOUNCES FINANCIAL RESULTS FOR YEAR ENDING JUNE 30, 2024

Hank Payments Corp. has released its fourth quarter (Q4) and year-end financial results for the period ending June 30, 2024.

Financial highlights:

• Revenue for the fourth quarter ending June 30, 2024, exceeded $1.98-million, an increase of 41 per cent over the June, 2023, quarter;
• Full-year revenue of $7.38-million, an increase of 25 per cent year over year;
• Adjusted loss from operations for Q4 improved by 17 per cent to $239,986 as compared with Q3, 2024, as a result of continued increase in revenues and lower operating expenses;
• Company continues prioritizing positive cash flow and EBITDA (earnings before interest, taxes, depreciation and amortization) from operations, and is focused on growth of high-margin revenue while investing carefully in technology and marketing.

Over the past year, the company has been focused on driving organic growth through new enterprise partner agreements given the size and value of the overall opportunity and scalable consumer acquisition model. The company will continue to innovate with new features that help clients and the enterprises that serve consumers to better manage and monitor their respective financial goals and performance. New products and features are expected to increase retention and profitability of consumer and enterprise partner relationships.

Consistent with the previous quarter, Hank continued to experience growing revenues for the quarter ending June 30, 2024. The company incurred an adjusted loss from operations of $239,986 in Q4 2024, compared with an adjusted loss from operations of $288,123 in the previous quarter, an improvement of 17 per cent. The decreased adjusted loss for the quarter is due to an increase in revenues providing higher gross profit and lower operating expenses. The company incurred a loss from operations of $308,103 in Q4 2024, as compared with a loss from operations of $452,468 in the previous March, 2024, quarter, an improvement of 32 per cent.

Revenue increased by $1,477,971 or 25 per cent for the year ended June 30, 2024, in comparison with the year ended June 30, 2023. The increase was primarily due to the launch in September, 2023, of a new licensing agreement and the addition of new revenue streams from education. The company recorded an adjusted loss from operations of $1,182,127 for the year ended June 30, 2024, compared with an adjusted loss from operations of $1,814,056 for the year ended June 30, 2023, an improvement of 35 per cent. The company recorded a loss from operations of $1,723,738 for the year ended June 30, 2024, compared with a loss from operations of $2,567,169 for the year ended June 30, 2023, an improvement of 33 per cent.

Michael Hilmer, chief executive officer and chairperson, commented, "We continue to focus on transactions and operational execution, as well as technology advancement that accelerates growth and earnings, and we are pleased with the meaningful progress our team has made toward these goals."

A comprehensive discussion of Hank's financial position and results of operations is provided in the financial statements and MD&A (management's discussion and analysis) for the three- and 12-month periods ending June 30, 2024, filed on SEDAR+.

About Hank Payments Corp.

Hank is a North American leader in consumer fintech (financial technology) software-as-a-service (SaaS) and banking-as-a-service (BaaS) platforms that manages consumer cash flow and budgets on an automated basis using proprietary algorithms that collect, store and disburse cash as required to discharge obligations in a timely fashion. The Hank stack provides for several vertical market applications of the technology, with features specific to channels and enterprise accounts (partners) that allow those partners to operate new lines of business and revenue streams, using Hank. The partners benefit from new revenue streams and powerful insights that open up additional opportunities for partners to grow assets using Hank. The company operates exclusively across the United States, with certain leadership and technology functions in Toronto. Hank houses the complex technology, banking, treasury, customer service, sales and operations teams that acquire and service consumers. Hank currently charges upfront enrolment/set-up fees and recurring monthly fees based on the types and quantity of payments that Hank Payments administers for the consumer (the users). The company acquires users through various channels, including: (i) small- to medium-sized enterprises (the SME partners); and (ii) large enterprise businesses (the enterprise partners). The company's BaaS model is emerging, which is expected to add additional fees, including software licensing and usage fees.

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