AirIQ Announces June 30, 2016 Quarterly Results; Highest Revenue in Over Six Years

TORONTO, ONTARIO--(Marketwired - Aug. 24, 2016) - AirIQ Inc. ("AirIQ") (TSX VENTURE:IQ), a supplier of wireless asset management services, today announced its financial results for the three months ended June 30, 2016, reporting improvements in revenues, EBITDAS and expenses compared to the same period the previous year.

"I am pleased to report that the Company has recorded its highest quarterly revenue in over six years," said Michael Robb, President and Chief Executive Officer of AirIQ. "This revenue growth, together with improvements in both EBITDAS and expenses, supports the Company's continued key strategy to maintain profitability and positive operating cash flow and to seek opportunities to form value creating strategic partnerships. It is especially notable given that we proactively completed our 2G to 3G transition in the U.S. at the end of 2015, well ahead of our competitors who will have to undergo this transition by the end of this year. We believe that this positions the Company for even further potential growth and future opportunities," continued Mr. Robb.

Unless otherwise noted herein, and except share and per share amounts, all references to dollar amounts from this point forward are in thousands of Canadian dollars.

First Quarter Highlights:

• EBITDAS of $127 for the three months ended June 30, 2016 improved 19% from $107 compared to the same quarter the previous year
• Revenue of $923 for the quarter ended June 30, 2016 increased from $822 compared to the three months ended June 30, 2015, an improvement of 12%
• Expenses of $299 for the three months ended June 30, 2016 improved 12% from the same quarter the previous year
• On May 31, 2016, the Company purchased certain software assets of Timeout Studios Inc., a private, arm's length third party, Canadian mobile web application company. Financial terms of the transaction were not material, and no securities of the Company were issued in connection with the transaction.

Financial Highlights
	Three months ended	Three months ended
	30-Jun-2016	30-Jun-2015
Total Revenue	$923	$822
Gross profit (1)	$426	$445
Gross profit % (1)	46%	54%
Expenses (2)	$299	$338
EBITDAS (3)	$127	$107
Other expenses (4)	$55	$33
Net income and comprehensive income	$72	$74
Net income per share, basic and diluted	$0.00	$0.00

(1)	Gross profits declined in the period due to the costs of transitioning customers due to the 2G Sunset.
(2)	Excludes share-based compensation.
(3)	EBITDAS represents earnings before interest, tax, depreciation, amortization, shared-based compensation expense and gain on business acquisition.
(4)	Includes non-cash notional charges such as interest, depreciation and amortization, impairment of long lived assets, share-based compensation expense.

Business Review