Inscape’s Response to Impact of COVID-19 - Seite 2

These employee initiatives will be in force for the next three months and re-evaluated quarterly. The leadership team and CEO salary reductions will be in force for six months. The Board of Directors is also reducing their cash compensation by 30% for a similar period of time as the leadership group.

These measures are in addition to the company’s efforts to access government subsidy, loan and grant programs, some of which have already proven successful and some of which the company anticipates will be available, which together with the people initiatives and thorough working capital management have allowed us to reinforce our balance sheet and prepare us for the economic impact of the COVID-19 pandemic. We are pleased to report that at the end of the fiscal year-end as at April 30, 2020 the company was debt-free, excluding a $1 million loan expected to convert to a full grant during Q1 of the current fiscal year, had over $5.9 million in cash and our $5 million bank operating loan facility was unutilized.

Inscape is actively developing selling strategies, evaluating and adapting existing product development plans and improving our operating efficiencies to enable us to be resilient in the face of this adversity and to ensure we will be in a much stronger position to grow our business as the economic recovery begins.

Forward-looking Information
This press release includes certain forward-looking information that is based on Inscape’s best information and judgments as at the date hereof. Forward-looking information in this press release includes, but is not limited to, statements with respect to Inscape’s plans to implement a Work-Share program and the departments that will affect, the employees that are subject to a salary reduction, as well as the size and length of the salary reduction, the length of time that the initiatives will be in place and the frequency with which they are evaluated, Inscape’s ability to access government subsidy, loan and grant programs and the impacts thereof, the sufficiency of Inscape’s liquidity position in light of the COVID-19 pandemic and related economic results and Inscape’s ability to develop and deploy new selling strategies, product development plans and operating efficiencies. Readers are cautioned not to place undue reliance on forward-looking statements found throughout this press release.