Ivrnet Announces Financial Results for Three-Months Ended March 31, 2023 and Provides Update on Trading Halt

CALGARY, AB / ACCESSWIRE / May 30, 2023 / Ivrnet Inc. (TSXV:IVI) ("Ivrnet" or the "Company") announces that it has filed its condensed interim consolidated financial statements for the three-months ended March 31, 2023 (the "Interim Financial Statements") and the accompanying management's discussion and analysis for the three-months ended March 31, 2023 (the "Interim MD&A").

The following Q1 2023 financial highlights should be read in conjunction with the Interim Financial Statements and the accompanying Interim MD&A, which can be found on the Canadian System for Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.com.

Q1 2023 Financial Highlights

• The Corporation saw continued growth in its financial technology recurring revenues. Fixed recurring revenue was $89,141 in Q1 2023 compared to $86,641 in Q1 2022 and variable recurring revenue increased by $14,892 (approximately 27%) to $69,637 in Q1 2023 compared to $54,745 in Q1 2022. The increase is primarily due to increased usage of the Corporation's products by existing customers in Q1 2023 and is partially offset by the loss of one financial technology customer during 2022.
• Fixed recurring revenue from Central decreased by $6,401 (approximately 14%) to $39,698 in Q1 2023 compared to $46,099 in Q1 2022 and variable recurring revenue increased by $10,376 (approximately 14%) to $83,444 in Q1 2023 compared to $73,068 in Q1 2022. The changes in revenue were primarily due to the loss of a customer together with a new pricing strategy, implemented in Q1 2022, for homeowner association customers which increased overall central revenue by reducing fixed fees while increasing variable fees.
• Fixed recurring revenue from Communications decreased by $2,794 (approximately 1%) to $319,384 in Q1 2023 compared to $322,178 in Q1 2022 and variable recurring revenue decreased by $25,178 (approximately 21%) to $93,020 in Q1 2023 compared to $118,198 in Q1 2022. Due to the increased use of video conferencing products, accelerated by the COVID-19 pandemic, the Corporation has seen a drop in customers in 2022 and Q1 2023 using its audio conference solutions.
• Total direct costs increased by $16,887 to $272,288 or approximately 39% of revenues in Q1 2023 compared to $255,401 or approximately 35% of revenues in Q1 2022. This overall increase is primarily due to an increase in certain variable communication costs tied to certain fixed recurring customer contracts, additional costs incurred in Q1 2023 for the transition of the Corporation's virtual data center, and generally higher costs due to sustained inflation.
• Earnings before Interest, Depreciation and Amortization ("EBITDA") for the three months ended March 31, 2023 was $61,047 compared to a loss of $402,156 for the three months ended March 31, 2022. This represents an increase in EDITDA of $463,203. The increase in EBIDTA is primarily a result of additional expenses incurred in Q1 2022 in connection with the reverse takeover transaction with Flexity Systems Ltd. (previously announced on November 19, 2021 and updated on March 29, 2022) together with reimbursable expenses submitted by the commercial lender in Q1 2022. This was partially offset by a decrease in revenue in Q1 2023 as compared to Q1 2022 and an increase in direct costs and general, administrative and marketing expenses in Q1 2023 as compared to Q1 2022.

Trading Halt

The Corporation's common shares are currently halted from trading, and the trading of the Corporation's common shares is expected to remain halted pending completion of the reverse takeover transaction with Flexity Systems Ltd. previously announced on November 19, 2021 and updated on March 29, 2022.

About Ivrnet

Ivrnet is a software and communications company that develops, hosts, sells and supports value‐added business automation software. The company's products and services are delivered through the Internet and traditional phone network. These applications facilitate automated interaction through personalized communication between people, mass communication for disseminating information to thousands of people concurrently, and personalized communication between people and automated systems.

For further information on Ivrnet, please contact:

Andrew Watts, President and CEO
Suite 1700, 10175 - 101 Street NW, Edmonton, Alberta, Canada, T5J 0H3
Tel/fax: 1.800.351.7227
E-mail: investors@ivrnet.com
Website: www.ivrnet.com

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Ivrnet Inc.