Mr. Michael Hilmer reports

HANK PAYMENTS ANNOUNCES QUARTER END SEPTEMBER 30, 2024, FINANCIAL RESULTS

Hank Payments Corp. has released its first quarter (Q1) financial results for the period ending Sept. 30, 2024.

First quarter financial highlights:

• Revenue for the first quarter, ending Sept. 30, 2024, was $2.04-million, an increase of 29 per cent over the September, 2023, quarter;
• Gross margins remain strong at 91 per cent;
• Adjusted loss from operations for Q1 improved by 61 per cent to $199,139, as compared with Q1 2023, of $507,797, and a 17-per-cent improvement over the quarter ended June, 2024, of $239,986;
• The 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.

Subsequent events post quarter:

• The company improved its balance sheet through two material events: (i) closing of a non-brokered private placement of a convertible debenture for total gross proceeds of $744,921; and (ii) the conversion of $2,544,000 of legacy convertible debentures and $200,732 of related interest into an aggregate of 54,894,640 common shares of the company, both events occurring in November;
• The company continues toward the closing of its acquisition announced in August and has early interest from customers in using the technology being acquired and the company believes that in time the transaction will create meaningful value.

Michael Hilmer, chief executive officer and chairperson, commented, "We continue to focus on operational and financial efficiencies, as well as driving opportunistic and strategic transactions that we expect to provide meaningful value over time."

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-month period ending Sept. 30, 2024, filed on SEDAR+.

About Hank Payments Corp.

Hank Payments 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 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 company acquires users through various channels, including: (i) small- to medium-sized enterprises; and (ii) large-enterprise businesses. The company's BaaS model is emerging, which is expected to add additional fees, including software licensing and usage fees.

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